Strategy's Financial Report Highlights Shareholder Dilution as BTC Gain

According to Odaily, Bitcoin financial company Strategy, formerly known as MicroStrategy, released its financial report this week. Founder Michael Saylor emphasized financial abstraction during a one-hour webinar. While he provided basic metrics for the company's fourth-quarter performance, the focus was on rebranding shareholder dilution as 'BTC Gain.' In the complex financial chain, Strategy has successfully diluted shareholder equity by concentrating on abstract financial models that prioritize the number of bitcoins per share rather than the reasons behind the numbers. Despite operating a declining enterprise software business, which was valued at less than $3 billion before the company's pivot to a BTC strategy in August 2020, Strategy's current market valuation of $85 billion is almost entirely derived from its $46 billion worth of Bitcoin holdings. The company's market value exceeds its BTC holdings by an 84% premium, which investors refer to as 'asset premium' or 'mNAV' (multiple of net asset value). As of the report, Strategy's mNAV stands at 1.84 times. Over the years, Strategy has traded at prices higher than its BTC holdings due to various factors, including its ability to sell attractively priced corporate bonds as a liquidity hedge for short selling. As of November 2024, its mNAV was above 3.4 times. The premium investors pay for Strategy's stock over its BTC holdings nearly encompasses all other aspects of interest on Wall Street: accounting models, options pricing, corporate bond yields, stock conversion, and key performance indicators (KPIs) such as Saylor's newly introduced BTC yield, BTC gain, and BTC dollar gain. These terms are positively reflected within the basic mNAV framework. Additionally, the company has listed a new type of dividend-paying convertible preferred stock, STRK, on Nasdaq.