CoinDesk
Strategy, the largest corporate holder of bitcoin, has replaced its gross BTC-based market metrics with a new framework that nets out the company's growing preferred stock and convertible debt obligations. The shift is designed to give common equity holders a more transparent view of their effective bitcoin exposure after $22.3 billion in senior claims rank ahead of them in any liquidation scenario.
The first output of the new framework is the Net Reserve, which currently stands at $36.6 billion. That figure takes Strategy's $55.6 billion bitcoin hoard of 843,775 BTC, adds $3.2 billion in USD reserves, then subtracts $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred stock. The company has also revised its multiple to net asset value formula, anchoring the equity issuance threshold permanently at 1.0x. Under the old method, the accretion threshold drifted and made it harder to tell whether new share issuance was actually accretive to existing holders; under the new rule, any issue above 1.0x adds BTC per share for all investors. A third metric, the BTC Breakeven ARR, sits at 3.22%, the minimum sustained annual BTC growth rate at which bitcoin gains alone can fund every interest and dividend obligation in perpetuity.
Why it matters
The overhaul lands in the middle of a bear market that began in October, with BTC trading near $65,000, roughly 50% below its all-time high, and MSTR sitting 84% below its November 2024 peak. Strategy's flagship preferred, STRC, trades near $85 and has not returned to its intended $100 par since mid-May. Saylor and team have repeatedly refined guidance over the past year, and the new framework is the most substantive reset yet: it concedes that the gross-BTC narrative no longer captures the capital structure common shareholders actually sit behind. By moving to net equivalents, the company is also implicitly pricing in the cost of the preferred and convertible stack that funded most of the past year's accumulation.
Market impact
The practical signal for the market is the 1.0x mNAV anchor.
Frequently asked questions
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What is Strategy's new Net Reserve figure?
Net Reserve stands at $36.6 billion, calculated from $55.6 billion in BTC (843,775 coins) plus $3.2 billion in USD reserves, minus $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred stock.
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How does the new mNAV formula differ from the old one?
The revised mNAV formula anchors the equity issuance threshold permanently at 1.0x. If MSTR trades above 1.0x, issuing new shares is accretive to existing holders. The previous method let the threshold drift and made it harder to judge whether new issuance benefited holders.
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What is the BTC Breakeven ARR and what does 3.22% mean?
The BTC Breakeven ARR is the minimum sustained annual BTC growth rate required for bitcoin gains alone to cover all interest and dividend obligations in perpetuity. At 3.22%, BTC only needs to appreciate faster than that rate annually for Strategy to fund every obligation through price gains alone.
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Why is Strategy overhauling its metrics now?
The company has been refining guidance throughout a bear market that began in October, with BTC near $65,000 (50% below its all-time high) and MSTR 84% below its November 2024 peak. The new framework gives common holders a clearer view of net exposure after preferred and convertible debt.
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What is STRC and why does its price matter?
STRC is Strategy's flagship preferred stock. It trades near $85 and has not returned to its intended $100 par value since mid-May, making its path back to par a key checkpoint for whether the new framework restores the equity premium.
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