MicroStrategy’s Bitcoin metrics raise leverage concerns

MicroStrategy chair Michael Saylor introduced two new Bitcoin-treasury metrics — CEBE BPS and “Amplification” — as the company’s shares trade below the value of its Bitcoin once debt and preferred obligations are subtracted. Neither term appears in MicroStrategy’s regulatory filings.

CEBE BPS reports Bitcoin per share after senior claims. Amplification measures the gap leverage creates between conventional Bitcoin-per-share figures and the senior-claims-adjusted view. Saylor wrote: “Not all liabilities are equal. Short-duration, high-cost liabilities can turn amplification into risk and underperformance. Long-duration, low-cost liabilities can turn amplification into common equity upside.” He added: “If BTC ARR exceeds the cost of capital, a well-capitalized Bitcoin Treasury Company should outperform BTC.”

MicroStrategy already reports Bitcoin Per Share, BTC Yield, BTC Gain and BTC dollar Gain to regulators and changed how it calculates those interim figures effective January 2026.

The company holds 845,256 Bitcoin accumulated since an acquisition program began in August 2020. At current prices the holdings are worth roughly $54 billion. MicroStrategy’s filings put the average entry price near $75,700 and the total cost basis above $61 billion; Bitcoin trades near $64,000. An unrealized loss of about $14.5 billion in the first quarter contributed to a $12.5 billion net loss for the period.

Outstanding preferred shares and debt together exceed $13.5 billion. Some preferred instruments carry rates as high as 11.5 percent. Those claims have priority over common shareholders in any payout or liquidation. Market pricing has the common stock trading below a measure of Bitcoin value after those senior claims are removed.

Some analysts and investors expressed concern. Nic Pucrin warned the market value already reflects a large fraction of MicroStrategy’s gross Bitcoin holdings and cautioned that issuing more stock or preferreds would dilute existing common shares and add senior claims. Quinn Thompson noted common shares trade at about 0.8 times net asset value and wrote that the company “sells stock worth 80 cents to buy dollar bills.” Former banker Pius Sprenger wrote on social media that he found it “increasingly worrying” that new metrics keep appearing.

Other investors described the metrics as measures of capital efficiency rather than valuation tools. MicroStrategy’s filings state the reported metrics are not valuation measures and that owning common stock does not confer a direct claim on the company’s Bitcoin.

The company completed its first Bitcoin sale since 2022. Market participants are watching Bitcoin’s price and MicroStrategy’s capital actions to assess how senior claims and leverage affect common shareholders.