Strategy has simplified its mNAV formula, a key metric in deciding whether to issue new shares. It also fixed the threshold for resuming issuance at 1.0 times.

On July 29 (local time), blockchain outlet U.Today reported the move was largely aimed at restoring investor confidence as MSTR shares have fallen more than bitcoin so far this year.

CEO Phong Le (풍 레) said the company has introduced a new fixed 1.0 times efficiency standard. Current mNAV has risen to as much as 1.07 times. Le described it as "the simplest and most transparent way to bring back stock issuance."

The overhaul is aimed at presenting a standard that the market can easily understand. Strategy appears to be trying to demonstrate to Wall Street that if it issues new shares under the new standard, bitcoin holdings per share will increase. Current bitcoin holdings per share stand at 0.0023 BTC.

Le said the new mNAV reflects 3 elements. He said the new metric reflects all securities senior to MSTR common stock, distinguishes between in-the-money and out-of-the-money convertible bonds, and sets a 1.0 times threshold for value-accretive MSTR issuance rather than value dilution. He also said the company received feedback from institutional and retail investors, analysts and bitcoin treasury strategy firms.

The revision comes as asset prices have remained weak this year. On a one-year return basis, MSTR shares fell 39.45 percent, the worst among the comparisons. The stock has also given back most of its spring rebound. Over the same period, bitcoin fell 26.43 percent. Strategy shares have dropped more steeply than bitcoin, its underlying asset.

Digital asset-related credit products also remained weak. Of Strategy's digital credit products totaling $12.2 billion, STRD fell 21.74 percent and STRK fell 24.04 percent.

The declines were smaller than in the common stock. The market sees the credit products as having held up relatively better than the common shares.

Against this backdrop, Strategy recently allocated $25 million to urgently buy back STRC preferred shares at $86.52 per share. The buyback price is below the $100 par value. The move is seen as an attempt to ease investor anxiety by adjusting the company's overall capital market structure.

The adjustment goes beyond a simple change in the calculation. Strategy is trying to present a low and clear mNAV threshold to improve predictability in future capital raises. With its share price weaker than bitcoin, showing in numbers that new share issuance does not harm the value held by existing shareholders has emerged as a key task in the company's strategy. The market is expected to watch whether issuance will actually resume under the new standard and whether the argument for increasing bitcoin holdings per share will persuade investors in that process.

Major update to $MSTR mNAV calculation Old mNAV: 1.04x New mNAV: 1.07x Under the new mNAV framework, the net BTC-per-share accretion threshold remains fixed at 1.00x. So if Strategy runs the common ATM above 1.00x to acquire additional BTC or increase its USD reserve, it is… pic.twitter.com/sTYlZmCgBW