Strategy developed indicators to explain MSTR dilution, and its current market value is 84% ​​higher than its BTC holdings

Odaily Planet Daily News Bitcoin financial company Strategy (formerly MicroStrategy) released its financial report this week, and founder Michael Saylor focused on financial abstraction in an hour-long webinar. While he provided basic indicators about the company's fourth-quarter performance, the main focus was on renaming shareholder dilution to phrases such as "BTC Gain." In the intricate financial chain, Strategy successfully diluted shareholder equity by focusing on abstract financial models that focus on the number of bitcoins per share, rather than the reasons for the number. Although Strategy operates a declining enterprise software business (valued at less than $3 billion before the company turned to BTC strategy in August 2020), its current $85 billion market value comes almost entirely from its $46 billion worth of Bitcoin. The company’s 84% ​​premium over the value of its BTC holdings is real, and investors call it the “asset premium” or “net asset value multiple” (mNAV). At press time, Strategy’s mNAV is 1.84x. For a number of reasons, including the volatile company’s ability to sell attractively priced corporate bonds as a liquidity hedge for short sales, Strategy has been trading at a premium to its BTC holdings for years. As of November 2024, its mNAV was above 3.4x. The premium that investors pay for Strategy shares over its BTC holdings covers nearly everything else Wall Street cares about: accounting models, option pricing, corporate bond yields, stock conversions, and key performance indicators (KPIs) such as Saylor’s newly launched BTC yield, BTC yield, and BTC USD yield, all of which are positive terms in the basic mNAV framework. In addition, the company has listed a new type of dividend-paying convertible preferred stock, STRK, on ​​Nasdaq. (Protos)