Strategy (formerly MicroStrategy) has halted Bitcoin acquisitions for four consecutive weeks, instead accumulating $3.2 billion in cash reserves, while simultaneously rolling out a new set of investor metrics designed to clarify the ownership structure of its $58 billion Bitcoin stockpile.
The company revealed that of its 843,775 BTC — purchased at an average price of $75,476 — roughly $22 billion is owed to lenders through senior claims, including $15.5 billion in preferred stock and $6.8 billion in out-of-the-money convertible debt. That leaves a “net reserve” of about $36 billion attributable to common shareholders, a figure the firm now labels its “net Bitcoin per share.” Executive chairman Michael Saylor stated that “Bitcoin Capital Markets require a new financial language,” as traditional accounting tools fail to capture the dynamics of debt-funded crypto holdings.
The pause in buying comes amid a bear market that has seen Bitcoin fall roughly 45% in the past year, while Strategy’s stock (MSTR) dropped 77% over the same period — illustrating the debt-driven multiplier effect. Despite this, Wall Street analysts maintain a consensus Strong Buy rating on MSTR with an average 12-month price target of $275.46, implying a potential upside of about 181% from the current level near $93.
The new metrics package redefines mNAV as share price divided by net Bitcoin per share, fixing an accretion threshold at 1.0x, and recasts “amplification” as an equity multiplier of approximately 1.5x. Additional gauges include a hurdle rate around 10.8% for the firm’s effective cost of credit, a break-even rate near 3.2%, and a flow rate of -11% that estimates how far Bitcoin could fall before reserves stop covering debt and dividends. The overhaul follows a late-June policy shift that, for the first time, authorizes Strategy to sell up to $1.25 billion of Bitcoin for cash reserve management and buybacks — a formal break from Saylor’s long-held “never sell” stance. For now, the company’s calculus assumes Bitcoin will not decline more than roughly 11% annually over the coming years.
