Strategic Revamps Bitcoin Valuation Metric... Introduces 'Per-Share Net Bitcoin'

Digitaltide AI Reporter: Strategic introduced a new metric 'Per-Share Net Bitcoin' to recalculate Bitcoin's value based on the share of common stockholders. According to blockchain media Decrypt on the 24th (local time), the shift toward preferred stock-based 'digital credits' in fundraising has prompted the revision of existing investment metrics. The revision's key is to separately show the share that common stockholders actually retain, rather than total holdings. Strategic presented approximately $3.5 billion as 'net equity' after subtracting $22.2 billion in preferred claims from its $57 billion in assets, which include 843,775 Bitcoin and $320 million in cash. Preferred claims include $15.5 billion in preferred shares and about $680 million in convertible bonds. The value of this net equity divided by the new fully diluted share count is 'per-share net Bitcoin.' Strategic stated that this metric rose from $13, 44,000 satoshis at the end of 2020 to $95, 143,000 satoshis, a 43% annual growth rate, compared to a 16% increase in Bitcoin itself during the same period. Strategic allowed the sale of up to $1.25 billion worth of Bitcoin to fund cash reserves, preferred dividends, and share repurchases when it approved the 'active capital management' framework in late June. However, in the following weeks, it sold MSTR shares instead of Bitcoin to raise cash.