Strategy Revamps Investor Metrics, Adds Net BTC and BTC Hurdle ARR

Strategy, a corporate Bitcoin holder, has overhauled the market metrics it provides to investors and introduced a new set of key indicators.

The company wrote on X on July 24 that it had updated the market metrics on its website after incorporating investor feedback. The changes are meant to provide a more accurate picture of the Bitcoin value attributable to common shareholders as Digital Credit makes up a larger share of its capital structure.

The newly added core metrics are Net Reserve, Net BTC and Net BTC Per Share (Net BPS). Strategy said the measures show the value of Bitcoin attributable to common shareholders after deducting net debt and preferred equity-related liabilities.

Strategy also revised its existing mNAV metric. Going forward, it will compare the share price against Net BTC Per Share, while keeping the benchmark for judging dilution unchanged at 1.0x. Its previous Amplification metric has been redefined as a Bitcoin Equity Multiplier, which shows how much the capital structure magnifies common equity's sensitivity to Bitcoin prices.

The company also introduced BTC Hurdle ARR and BTC Floor ARR. BTC Hurdle ARR represents Strategy's effective funding cost and indicates it can secure a positive return spread if Bitcoin's annualized return exceeds that level. BTC Floor ARR refers to the minimum annualized return needed to maintain a 1.0x BTC Rating under the current capital structure.

The website now also includes market indicators such as Premium to 200WMA and the Fear & Greed Index. Strategy said the overhaul will help investors better understand Bitcoin as an asset, a network and a form of Digital Capital, while making the company's business structure easier to assess more transparently.