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 Normal: KPIs for Bitcoin,” the framework introduces a Bitcoin Normal that redefines how corporations method valuation, capital deployment, and company governance.
In line with Phong Le, the “BTC Normal” will rework 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 corporations efficiency transparency in actual time. These embody BTC Yield, BTC Achieve, and BTC $ Achieve. Valuation metrics embody BTC $ Earnings, BTC $ Worth, BTC $ Fairness, BTC Torque, and BTC A number of. Credit score metrics embody BTC Score, BTC Danger, 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.
Latest BTC valuation information from Technique features a BTC Torque of 6.9x on $100 million of MSTR fairness, with a 30% BTC ARR, $50 million in BTC $ Achieve, $639 million in BTC $ Earnings, and $689 million in BTC $ Worth.
For convertible debt, the corporate reported progressively greater BTC Torque figures:
- 8.9x with $64 million BTC $ Achieve and $886 million BTC $ Worth
- 10.4x with $80 million BTC $ Achieve and $1.038 billion BTC $ Worth
- 12.8x with $100 million BTC $ Achieve and $1.279 billion BTC $ Worth
These metrics reinforce the structural monetary benefit Technique sees in adopting the BTC Normal.
Le emphasised the necessity to think about each debt and fairness when evaluating BTC Torque, stating, “To have the ability to subject debt, the oldsters who worth that debt take a look at our debt-to-equity, take a look at our leverage, and so, to have the ability to subject extra debt, now we have to have extra fairness obtainable. That’s one cause why you may’t simply take a look at BTC torque alone by itself.”
Le additionally introduced that Technique will publish and open-source a BTC Normal Mannequin—much like the Bitcoin mannequin launched in 2024—to assist different corporations undertake these KPIs. He referenced corporations like Metaplanet and KULR as early adopters.
“The rules of company finance written in 1988 by Stuart Myers should be up to date,” Le mentioned. “We’d like a ebook on the BTC normal… we’re writing the ebook as we go alongside.”
These interested by watching the complete Bitcoin For Firms livestream can accomplish that right here: