MSTR Posts 42% Annualized Return Since August 2020

Strategy Inc. (Nasdaq: MSTR) reported a 42% annualized return for its stock since the company adopted bitcoin as its primary treasury reserve on Aug. 10, 2020. The company said that performance outpaced bitcoin, the so-called Magnificent Seven large-cap tech stocks and the S&P 500 over the same period.

As of July 29, Strategy holds 843,775 bitcoins acquired for an aggregate $63.69 billion, an average of $75,476 per coin. That cost basis yields an estimated $11.4 billion paper loss, roughly 17.9% below the treasury’s aggregate purchase price.

On July 24 the company introduced a new set of metrics to describe the bitcoin position alongside its capital structure. Net BTC Per Share is presented as a bitcoin-denominated book-value figure that subtracts debt and preferred-stock claims. BTC Hurdle ARR represents the annualized bitcoin return the company would need to cover its funding costs. BTC Floor ARR shows the minimum annual bitcoin return required to keep the company’s leverage ratio, the BTC Rating, at 1.0x.

Those measures are intended to translate the treasury, debt and preferred instruments into per-share bitcoin terms. Chief Executive Michael Saylor described the reporting changes as reflecting the increased complexity of the company’s capital structure after multiple classes of preferred stock were layered on top of the original bitcoin strategy.

The long-run annualized return figure incorporates early bitcoin purchases from 2020 and 2021 that were made at much lower prices. More recent purchases at higher prices have raised the treasury’s average cost and contributed to the current paper loss even while the stock’s multiyear annualized return remains positive.

Strategy continued to add bitcoin through 2026 and recently increased its dollar reserve by $525 million, primarily to support dividend coverage on preferred shares. In 2026 the company’s share price has shown volatility and has pulled back from prior highs even as the firm accumulated more bitcoin. The company’s financing activity and preferred-stock issuances have prompted the shift to bitcoin-denominated reporting and the new performance metrics.