Why Is MSTR Stock Rising Today? Bitcoin Rally and Saylor’s New Strategy
Following a two-week downtrend, Strategy Inc (MSTR) stock witnessed an upward movement. The sudden rise is primarily due to factors such as Michael Saylor’s new set of Bitcoin treasury metrics for MicroStrategy (MSTR), the return of institutional investors, and the emerging positive momentum of the Bitcoin market.
Saylor Introduces CEBE BPS to Address Leveraged Discount Fears
Saylor introduced a new set of analytical indicators to evaluate the true underlying value of MSTR relative to its digital assets. Traditionally, Strategy reports four KPIs to regulators: Bitcoin Per Share (BPS), BTC Yield, BTC Gain, and BTC dollar Gain.
The BPS was calculated by taking the total corporate BTC holding and dividing it by the outstanding common shares. According to Saylor, it fails to address the structural liabilities, and there were concerns that MSTR was trading at a distinct discount to its modified Net Asset Value (mNAV) once the debt and senior preferred share obligations were deducted.
Saylor has now introduced the Common Equity Bitcoin Exposure Bitcoin Per Share (CEBE BPS), a new metric that shows the potential downside, unlike the standard BPS that only reflects the upside before liabilities.
How is CEBE BPS Calculated?
In a tweet, Saylor said that the distinction between BPS and CEBE BPS lay in amplification; with no debt or preferred securities, BPS is equal to CEBE BPS, and a Bitcoin Treasury Company would track BTC like an ETF, and as liabilities grew, BPS and CEBE would diverge, potentially allowing the company to outperform BTC.
Standard BPS is calculated by dividing the total BTC by the total common shares, but CEBE BPS is calculated by:
CEBE BPS = (Total Bitcoin – Senior Liability Claims) / Total Common Shares
While BPS measures the absolute rate at which the corporate equity accumulates BTC, the CEBE BPS systematically removes all senior debt claims, convertible notes, and preferred stock structures.
Strategy’s Full Portfolio Holdings
As the first and largest BTC treasury, Strategy holds the highest number of Bitcoins of any other publicly traded company.
| Total BTC Holdings | 845,256 |
| Market Cap | $43,921 Million |
| MSTR Price | $123.97 |
| 1 Year Return | -67% |
| 1 Year Volatility | -71% |
| Trading Volume | $2,067 Million |
| Debt | $6,754 Million |
Additional Factors that Influence MSTR’s Uptrend
Since BTC is in a dip, institutional investors will likely start allocating their shares, and it will be reflected in BTC-based stocks, similar to previous bear phases. Bitcoin witnessed a 4% rise this week, and it is trading today at a price of $65.4K.
According to the renowned investor Mike Alfred, Bitcoin could reach between $150,000 and $250,000 in the next uptrend, adding that the rally will coincide with the bull phase of the stocks of AI companies.
Contrary to that, Galaxy Digital predicts that BTC will reach a $40K bottom soon. Despite the polarising predictions, the on-chain data reveals that intentional accumulation of BTC has begun.
The Bottom Line
Michael Saylor tweeted that he will announce another Bitcoin purchase today, probably making the MSTR treasury reach 850,000 BTC. Various traders consider this a bullish signal for both MSTR and Bitcoin. At present, Bitcoin is trading for $66,176.38, a 2.54% rise from yesterday.
