Strategy (NASDAQ: MSTR) saw its stock fall 6.38% on July 24, closing at $93. The drop came after the company announced a change in how it reports Bitcoin exposure to common shareholders, shifting from gross holdings to a net BTC reserve metric. The adjustment was disclosed ahead of the company's upcoming earnings report.
New metric, same Bitcoin
Strategy said it will now measure its Bitcoin exposure to common shareholders based on net BTC reserve, rather than the gross amount of Bitcoin on its balance sheet. The net figure subtracts liabilities — like convertible debt — from the Bitcoin holdings, giving a per-share view of the crypto that equity holders actually own. The company didn't provide further details on the exact calculation or how it will affect reported earnings.
Market reaction
The 6.38% decline on July 24 erased roughly $X million in market value (exact figure not given, so avoid). The stock closed at $93, down from the previous close. The timing of the announcement, just ahead of earnings, may have caught some investors off guard. Strategy has not yet commented on whether the metric change will affect its earnings guidance.
Strategy is expected to report earnings in the coming days. Investors will be watching for the first set of numbers under the new net BTC reserve calculation, and whether the company provides a reconciliation between the old and new metrics. The stock's performance this week will likely hinge on how the market interprets the adjusted exposure figure.
