Phong Le, CEO of Strategy, has unveiled a brand new monetary mannequin that reframes conventional company finance via the lens of Bitcoin. Titled “A New Monetary Commonplace: KPIs for Bitcoin,” the framework introduces a Bitcoin Commonplace that redefines how firms method valuation, capital deployment, and company governance.
In keeping with Phong Le, the “BTC Commonplace” will remodel key pillars of company finance: valuation and choices, capital deployment and construction, and company governance.
On the coronary heart of this shift is a brand new framework constructed round Bitcoin-based Key Efficiency Indicators (BTC KPIs), created to supply firms efficiency transparency in actual time. These embrace BTC Yield, BTC Acquire, and BTC $ Acquire. Valuation metrics embrace BTC $ Earnings, BTC $ Worth, BTC $ Fairness, BTC Torque, and BTC A number of. Credit score metrics embrace BTC Ranking, BTC Threat, BTC Credit score, and BTC Credit score Hurdle.
Technique updates its BTC KPIs each 15 seconds. This stands in stark distinction to the normal mannequin of reporting each 90 days, which Le says makes Technique’s method roughly 500,000x extra clear.
Current BTC valuation knowledge from Technique features a BTC Torque of 6.9x on $100 million of MSTR fairness, with a 30% BTC ARR, $50 million in BTC $ Acquire, $639 million in BTC $ Earnings, and $689 million in BTC $ Worth.
For convertible debt, the corporate reported progressively increased BTC Torque figures:
- 8.9x with $64 million BTC $ Acquire and $886 million BTC $ Worth
- 10.4x with $80 million BTC $ Acquire and $1.038 billion BTC $ Worth
- 12.8x with $100 million BTC $ Acquire and $1.279 billion BTC $ Worth
These metrics reinforce the structural monetary benefit Technique sees in adopting the BTC Commonplace.
Le emphasised the necessity to think about each debt and fairness when evaluating BTC Torque, stating, “To have the ability to challenge debt, the oldsters who worth that debt have a look at our debt-to-equity, have a look at our leverage, and so, to have the ability to challenge extra debt, we’ve got to have extra fairness out there. That’s one motive why you possibly can’t simply have a look at BTC torque alone by itself.”
Le additionally introduced that Technique will publish and open-source a BTC Commonplace Mannequin—much like the Bitcoin mannequin launched in 2024—to assist different firms undertake these KPIs. He referenced firms like Metaplanet and KULR as early adopters.
“The ideas of company finance written in 1988 by Stuart Myers have to be up to date,” Le mentioned. “We’d like a ebook on the BTC customary… we’re writing the ebook as we go alongside.”
These desirous about watching the total Bitcoin For Firms livestream can achieve this right here:
