Strategy Inc. holds 843,775 BTC valued at around $55.6 billion, but common shareholders' real claim on this massive Bitcoin reserve has been murky. On July 24, the company unveiled a new metric, Net Bitcoin Per Share (Net BPS), designed to cut through the complexity. This figure subtracts $22.3 billion in senior claims from the total Bitcoin holdings, revealing what ordinary investors actually own after debts and preferred shares are accounted for.
Breaking Down the Numbers
The $22.3 billion senior claims comprise $6.8 billion in convertible debt that remains unconverted due to stock price levels, plus $15.5 billion in preferred stock priority. After deducting these obligations, the net Bitcoin asset base stands at an estimated $36.6 billion. This means common shareholders effectively have rights to about two-thirds of Strategy’s Bitcoin treasury, not the entire stash. Dividing that net figure by the fully diluted share count gives investors a precise per-share value, expressed in satoshis or US dollars.
A Shift in Capital Structure and New Dilution Measures
Strategy’s move aligns with its June 29 announcement of a “Digital Credit” framework, treating Bitcoin reserves as collateral for a layered capital stack. The Net BPS metric acknowledges how traditional measures like raw Bitcoin holdings no longer reflect realities for shareholders amid growing financial complexity.
Alongside this, Strategy revamped its multiple-to-net-asset-value (mNAV) formula, locking the equity issuance threshold at 1.0x. This means new shares will only be issued if priced above the net asset value per share, protecting existing investors from dilution. In fact, issuing shares above this threshold increases Net BPS for current shareholders.
The company also revealed a Bitcoin Breakeven Annualized Return Rate of 3.22%. If Bitcoin appreciates beyond this yearly rate, Strategy can cover interest on convertible debt and preferred dividends purely through BTC gains, a key metric for assessing sustainability.
