Strategy Inc. CEO Phong Le has announced a major change to how the company issues new shares, making the calculation process much simpler. This financial update comes as the company and Bitcoin have both experienced significant price drops this year, according to recent data from TradingView.
Why change the formula now?
The key update is a set efficiency level of 1.0x. With the mNAV metric now at 1.07x, Le believes this establishes a clear and straightforward signal to begin issuing new shares again.
This updated plan aims to rebuild investor trust during a period of significant market challenges. As the chart illustrates, the company’s value and its financial obligations have both decreased substantially since January.
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We’ve improved our mNAV calculation to be more accurate. It now considers all debts with a higher claim than MicroStrategy stock ($MSTR), differentiates between in-the-money and out-of-the-money convertible notes, and sets a benchmark for when issuing more $MSTR would benefit existing shareholders. We appreciate the helpful input from investors, analysts, and companies focused on Bitcoin treasury strategies.
— Phong Le (@phongle) July 28, 2026
Management is trying to reassure investors by using a simple measurement to demonstrate that issuing more shares will actually increase the amount of Bitcoin held per share – currently 0.0023 BTC. They hope this will satisfy Wall Street’s concerns about future stock offerings.
Worst performance of the year: MSTR shares fall faster than Bitcoin
The company’s recent performance, as shown in the one-year chart, made it clear that a significant change in direction was necessary. Investors were particularly let down by the performance of the company’s own stock, MSTR.
- MSTR collapse: The company’s shares delivered the worst result on the chart, plunging 39.45%. The stock has completely erased its spring rally, when it briefly outperformed the market, and is now in a deep decline.
- Bitcoin decline: The leading cryptocurrency, BTC/USD, has lost 26.43%. Strategy shares are therefore falling significantly faster than their underlying asset.
Looking at Strategy’s digital credit instruments, which represent a significant $12.2 billion in trading volume, I’m seeing declines, but they’re holding up better than the company’s common stock. While they are currently down, the impact hasn’t been as severe.
- STRD has declined 21.74%.
- STRK has fallen 24.04%.
The company’s disappointing results led management to decide to spend $25 million buying back its STRC preferred shares for $86.52 apiece – less than the original price of $100 per share.
2026-07-29 16:52