TechFlow News, June 14: Michael Saylor, Chairman of Strategy, published a post providing a systematic explanation of two core metrics used in the company’s capital structure analysis—BPS (Bitcoin Per Share) and CEBE BPS.
Saylor stated that BPS measures the amount of Bitcoin attributable to each share of common stock before deducting senior claims, emphasizing a long-term growth perspective. This metric reflects how the Bitcoin reserves backing each share of common equity grow as the company continues accumulating Bitcoin through financing methods such as bond issuance and equity offerings. Strategy’s commonly used BTC Yield metric is precisely based on BPS to assess the effectiveness of capital deployment.
In contrast, CEBE BPS adopts a more conservative calculation method. After deducting all senior claims—including debt, convertible bonds, and preferred stock—CEBE BPS quantifies the actual per-share Bitcoin risk exposure ultimately borne by common shareholders. Saylor defines it as a key reference indicator for risk assessment.
He further noted that the relative importance of these two metrics closely correlates with the maturity profile of the company’s liabilities. If debt maturities are short, CEBE BPS carries greater relevance, as it better reflects the true residual equity position of common shareholders should debt become immediately due. Conversely, when liabilities have longer maturities, BPS becomes more meaningful, since Bitcoin price appreciation over the long term may offset financing costs—including accrued interest and dividends.
Saylor emphasized that investors should not simply evaluate Strategy’s value by dividing the company’s total Bitcoin holdings by its total number of shares outstanding. For enterprises employing sophisticated capital structures to continuously accumulate Bitcoin, capital structure analysis constitutes an essential component in understanding shareholders’ actual equity interests and risk exposures.
