MicroStrategy revised its framework for reporting bitcoin holdings. The company aims to better reflect the value available to common shareholders. New metrics now account for senior claims. These include convertible debt and preferred stock obligations. Reporting shifts from gross figures to net equivalents. The change intends to offer a more transparent view of the company's financial position. This occurs amid a prolonged downturn in the cryptocurrency market.
The updated reporting introduces a new metric, "Net Reserve." This metric subtracts liabilities from the company's total bitcoin and dollar reserves. Liabilities include convertible debt and preferred stock. MicroStrategy holds 843,775 bitcoins. Approximately $22.3 billion in senior claims are factored out. This leaves a net reserve of around $36.6 billion for common shareholders. The stock fell over 6% following the announcement.