Michael Saylor has unveiled a new set of Bitcoin treasury metrics for MicroStrategy amid mounting criticism regarding the sustainability of the company’s leveraged approach and its potential impact on common shareholders. These new metrics come at a time when MicroStrategy’s stock is experiencing a significant pullback, now trading below the value of its Bitcoin holdings once debt and preferred obligations are accounted for.
Saylor’s latest metrics build upon the company’s existing four key performance indicators (KPIs) that are reported to regulators: Bitcoin Per Share, BTC Yield, BTC Gain, and BTC Dollar Gain. Notably, starting January 2026, the company will also adjust how these figures are calculated for interim periods. The new metrics introduced by Saylor include a Bitcoin metric per share after senior claims, termed CEBE BPS, and a concept described as “Amplification,” which refers to the differential that leverage creates between the two measures.
In Saylor’s view, not all liabilities are the same; he emphasized that short-duration, high-cost liabilities can introduce considerable risk and underperformance, while long-duration, low-cost liabilities could convert amplification into beneficial equity upside. He stated, “If BTC ARR (Annualized Rate of Return) exceeds the cost of capital, a well-capitalized Bitcoin Treasury Company should outperform BTC.” However, these terms and metrics have yet to be incorporated into official filings, raising questions about their applicability and transparency.
Currently, MicroStrategy holds 845,256 bitcoins, a figure resulting from a significant buying program initiated in August 2020, which has led to record Bitcoin holdings valued at approximately $54 billion. However, the company’s average purchase price is around $75,700, with a total cost basis exceeding $61 billion, placing its holdings underwater as Bitcoin’s spot price hovers near $64,000. The company’s first-quarter results disclosed an unrealized loss of $14.5 billion, contributing to a net loss of $12.5 billion. Despite these setbacks, Saylor has expressed a continued interest in acquiring more Bitcoin.
Critics warn that the company’s current strategy could lead to unfavorable outcomes. Analyst Nic Pucrin stated that MicroStrategy trades at about 84% of its gross Bitcoin value and each available option may exacerbate existing issues. He pointed out that issuing stock dilutes Bitcoin per share, while an increase in preferred shares adds to obligations exceeding $13.5 billion. Additionally, selling Bitcoin could trigger panic, leading Pucrin to express concerns over MicroStrategy’s current position.
Others, like Quinn Thompson, echoed similar concerns about the valuation of MSTR common stock, which trades at around 0.8 times its net asset value, burdened by $8.2 billion in debts and preferred shares that can carry interest rates as high as 11.5%. He accused the company of selling stock valued at 80 cents to acquire dollar bills, implying a precarious financial strategy.
Former banker Pius Sprenger critiqued the validity of Saylor’s new metrics, stating they measure capital efficiency rather than actual value. Investor Adrian also pointed out that MicroStrategy’s own filings confirm these metrics do not serve as indicators of valuation and that owning a share does not entitle shareholders to a claim on the company’s Bitcoin holdings. As the tension between innovation and criticism continues to unfold, MicroStrategy navigates a complex financial landscape with its ambitious Bitcoin investment strategy.
