Strategy Rewrites Bitcoin Metrics as Treasury Model Faces Pressure

Strategy introduces Net Reserve and Net Bitcoin Per Share

Strategy’s central new metric is Net Reserve, which adds the value of its Bitcoin holdings to its U.S. dollar reserves and then subtracts convertible debt and preferred-stock claims. The calculation is designed to show the residual value economically attributable to common shareholders after higher-ranking obligations are satisfied.

Strategy held 843,775 BTC when the framework was released. Two valuations included in the available information placed that reserve at approximately $55.6 billion and $57 billion, reflecting different market-price snapshots rather than different Bitcoin balances.

The company also held approximately $3.2 billion in U.S. dollar reserves.

Senior claims consisted of $15.5 billion in notional preferred stock and roughly $6.8 billion in out-of-the-money convertible debt. The combined obligations were presented as approximately $22.3 billion, although one calculation rounded them to $22.2 billion.

Using the lower Bitcoin valuation, Strategy calculated Net Reserve at approximately $36.6 billion. A separate calculation using another market snapshot and rounded figures placed the residual value at approximately $35 billion.

Strategy converts Net Reserve into Net Bitcoin Per Share by dividing the residual value by a newly defined fully diluted common-share count. The measure replaces a gross calculation that divided total Bitcoin holdings by outstanding shares without first accounting for obligations held by senior creditors and preferred shareholders.

Net Bitcoin Per Share increased from approximately $13, equal to 44,000 satoshis, at the end of 2020 to approximately $95, equal to 143,000 satoshis, when the new framework was published.

Strategy calculated a compound annual growth rate of approximately 43% for Net Bitcoin Per Share during that period, compared with a reported 16% compound annual growth rate for Bitcoin.

Revised mNAV sets a fixed issuance threshold

Strategy also changed its multiple-to-net-asset-value, or mNAV, calculation. The revised formula divides the MSTR share price by Net Bitcoin Per Share rather than gross Bitcoin Per Share.

The company said the previous framework allowed its accretion threshold to change alongside its capital structure, making it harder to determine whether issuing additional common shares increased or reduced Bitcoin exposure for existing shareholders.

Strategy permanently fixed the equity-issuance threshold at 1.0x mNAV. Under the company’s methodology, issuing common shares above that level increases Bitcoin backing per share, while issuing below it would dilute the net Bitcoin exposure attributable to existing common shareholders.

MSTR traded at approximately $93 on July 24, 2026, producing a revised mNAV of approximately 1.02x. Under the former gross calculation, the same share price could appear to represent a discount to Strategy’s Bitcoin holdings. Deducting the senior obligations moved the calculated multiple back toward parity.

The company also introduced an amplification metric, calculated by dividing gross Bitcoin reserve value by Net Reserve. Strategy placed that equity multiplier at approximately 1.5x, reflecting the greater sensitivity of the residual value available to common shareholders after fixed senior claims are deducted.

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New metrics measure financing sustainability

Strategy introduced a hurdle rate of approximately 10.8%, representing what the company characterized as its effective cost of credit.

The company also calculated a Bitcoin Breakeven annualized return rate, or BTC Breakeven ARR, of approximately 3.22%. Strategy said Bitcoin would need to appreciate above that annual rate for gains in the reserve to cover interest expenses and preferred-stock dividend obligations indefinitely without requiring structural changes.

A separate BTC Floor ARR represents the minimum sustained Bitcoin growth rate over the life of Strategy’s credit structure before the company would need to consider restructuring.

Strategy calculated a flow rate of approximately negative 11%, estimating the annual Bitcoin decline its reserve could withstand before it stopped covering debt and preferred-dividend commitments under the model.

The calculations indicated that the structure remained sustainable if the Bitcoin price, then near $64,000, did not decline by more than that annualized amount through the early 2030s.

Strategy also added broader market indicators, including Bitcoin’s premium to its 200-week moving average and the Fear and Greed Index.

The revised measurements were released before Strategy’s scheduled second-quarter earnings announcement on July 30, 2026.

Bitcoin downturn increases pressure on Strategy securities

The overhaul followed a prolonged market decline that began after Bitcoin reached a record near $126,000 in October 2025. The asset subsequently fell approximately 50% and traded around $64,000 to $65,000 on July 24.

MSTR was approximately 84% below its November 2024 peak, meaning the common shares had declined more sharply than the underlying Bitcoin reserve.

STRC, Strategy’s flagship preferred stock, traded near $85 and had remained below its intended $100 par value since mid-May 2026.

Strategy had adopted a capital-management policy in late June that authorized the sale of as much as $1.25 billion in Bitcoin under specified conditions. Permitted uses included replenishing cash reserves, paying preferred-stock dividends and financing share repurchases.

The authorization represented a departure from Saylor’s longstanding “never sell” position, although Strategy did not characterize the policy as an abandonment of its broader Bitcoin strategy.

Strategy later raised cash by issuing MSTR common shares, preserving the reported treasury balance associated with the metrics release while increasing the diluted share count.

Separate information stated that Strategy had sold approximately 3,620 BTC during recent weeks and authorized additional sales to support its dollar reserves. That transaction figure and the preserved 843,775 BTC balance reflect different reported measurement points, leaving the timing and balance cutoff as an explicitly unresolved discrepancy.

Strategy nevertheless remained the largest publicly listed corporate Bitcoin holder, with more than 840,000 BTC.

Saylor said, “We will probably sell some Bitcoin to fund a dividend just to inoculate the market,” presenting a limited sale as a demonstration of liquidity rather than a broad liquidation.

Treasury companies sell Bitcoin and restructure

Strategy pioneered the publicly listed digital-asset-treasury model in 2020 by using corporate cash, equity issuance and borrowed funds to accumulate Bitcoin. Other public companies subsequently adopted similar approaches.

The market downturn reduced the equity valuations of treasury companies, limited their access to new financing and forced former accumulators to sell Bitcoin, repay debt, finance operations or restructure their businesses.

Matthew Sigel, VanEck Head of Digital Assets Research, said several digital-asset-treasury companies had either exited crypto entirely or materially reduced their holdings.

Satsuma Technology shareholders approved the liquidation of the company’s entire 668 BTC position during the week of July 24. The plan also called for returning capital to shareholders and delisting from the London Stock Exchange.

Smarter Web Company sold 178 BTC to repay a convertible instrument.

Smarter Web CEO Andrew Webley said, “When we entered into Smarter Convert in August 2025, it provided an innovative alternative to traditional leverage.”

Webley added, “… whilst we continue to recognise the potential benefits of both fiat and Bitcoin-denominated convertible instruments, we do not currently believe they represent the right capital solution for The Smarter Web Company.”

Sequans Communications sold 1,025 BTC and later disposed of nearly 80% of its remaining holdings to repay convertible debt. Sequans ruled out additional purchases and planned to monetize its remaining 658 BTC.

Nakamoto’s share price had declined approximately 99% since its May 2025 special-purpose acquisition company transaction. The company sold approximately 284 BTC to raise $20 million in working capital following its acquisitions of BTC Inc. and UTXO Management.

Sigel said Nakamoto also sold approximately 40 BTC received through its derivatives program.

Nakamoto retained 5,342 BTC, although almost 70% of that balance had been pledged as collateral for a Kraken loan scheduled to mature in December 2026.

Sigel called the maturity a potential “binary event” because Nakamoto’s ability to repay or refinance the loan could determine whether the company retained control of a substantial portion of its Bitcoin.

Empery Digital sold almost half of its holdings to fund share repurchases and debt repayment.

Bitcoin miners were also reducing treasury positions while redirecting capital and infrastructure toward artificial-intelligence computing.

Bitdeer and MARA Holdings sold Bitcoin to repurchase or repay debt and began repurposing power-supply agreements and computing resources for AI data centers.

Leadership and transaction changes accompanied the treasury reductions. Jack Mallers stepped down as CEO of Twenty One Capital.

Adam Back’s Bitcoin Standard Treasury Company, or BSTR, did not complete its proposed merger because of unfavorable market conditions.

The developments show how the digital-asset-treasury financing model changes when company shares lose their premium to underlying assets. Companies that previously issued equity to purchase Bitcoin have instead begun selling Bitcoin to meet debt obligations, finance operations or repurchase discounted shares.

Strategy’s revised framework addresses that pressure by deducting senior claims before measuring the Bitcoin value available to common shareholders and by setting a fixed threshold for future common-stock issuance.