MicroStrategy introduces a new Bitcoin valuation metric to visualize the value of its held assets

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According to PANews, Michael Saylor, founder and Executive Chairman of MicroStrategy, announced on the X platform that a new “BTC valuation indicator” has been added to the company’s website. MicroStrategy has been continuously releasing Bitcoin-related analytical tools, and the introduction of this indicator is seen as further strengthening the company’s Bitcoin strategy.

Calculation Method and Features of the BTC Valuation Indicator

Chaitan Yain, Head of Bitcoin Product Strategy at MicroStrategy, provided a detailed explanation of how this new valuation indicator is calculated. The BTC valuation indicator is calculated using the following formula:

(Bitcoin holdings - debt - preferred stock + USD reserves) ÷ market capitalization

This indicator shows the proportion of a company’s net Bitcoin holdings relative to its market value, serving as an important reference for Bitcoin investors to assess the company’s actual BTC asset value. A higher value indicates that the company’s net Bitcoin holdings are relatively large.

Significance of the New Valuation Indicator

With the introduction of this valuation indicator, investors can quickly assess how much actual Bitcoin assets companies like MicroStrategy hold. Especially as Bitcoin’s current price has risen above $82,000, accurately understanding each company’s Bitcoin holdings has become increasingly important.

Since last year, MicroStrategy has actively promoted Bitcoin investments, positioning Bitcoin strategy at the core of its business model. The new valuation indicator is an attempt to present this investment approach to the market with greater transparency. Having such detailed valuation metrics will enable both stock investors and Bitcoin investors to make more accurate investment decisions.

BTC-7,55%
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