Saylor unveils Net BTC Per Share and BTC Hurdle ARR

On July 24 MicroStrategy CEO Michael Saylor introduced two metrics, Net BTC Per Share and BTC Hurdle ARR, on the company’s investor dashboard to show the bitcoin value attributable to common shareholders. MicroStrategy’s treasury holds 843,775 BTC acquired for $63.69 billion, an average of $75,476 per coin including fees.

Net BTC Per Share converts the company’s bitcoin value into a per-share bitcoin figure after subtracting net debt and claims from preferred equity. The company retired its previous mNAV benchmark and will compare market price to Net BTC Per Share, using a 1.0x line as a threshold for potential dilution. The former Amplification metric is now called Bitcoin Equity Multiplier and measures how the capital structure magnifies common equity exposure to bitcoin price changes.

BTC Hurdle ARR shows the annualized bitcoin return needed to produce a positive spread over the company’s funding costs, the return required to cover debt and preferred obligations. BTC Floor ARR shows the minimum annualized bitcoin return required to maintain a 1.0x BTC Rating under the current capital structure. MicroStrategy included these figures on the dashboard so investors can see the returns implied by its funding mix.

The dashboard also displays market indicators such as Premium to the 200-week moving average and a Fear & Greed Index. The new Hurdle and Floor figures expand on an earlier BTC Breakeven ARR that estimated a 3.3% annual bitcoin return to fund certain preferred dividends indefinitely.

The company disclosed it sold 3,588 BTC for about $216 million between June 29 and July 5 to fund preferred dividends and rebuild a dollar cash reserve that stood near $3.2 billion. The new metrics do not change the size of the treasury but aim to show how much of the bitcoin value is effectively attributable to common equity.

“Bitcoin Capital Markets require a new financial language,” Saylor wrote on X. MicroStrategy wrote the metrics “provide a more accurate picture of the Bitcoin value attributable to common shareholders” as Digital Credit and multiple classes of preferred stock have changed the balance sheet.