BTC Rating is here, and Strategy needs to use new indicators to rewrite valuation logic

The Strategy official website has officially launched the “BTC Rating” indicator. This is not just a number game, but a key step in Saylor’s promotion of the “Digital Credit” strategy—using transparent valuation tools to give investors a clearer view of the true value of Bitcoin reserves.

What is the BTC Rating indicator

Indicator definition and calculation logic

According to Chaitanya Jain, head of Strategy’s Bitcoin product strategy, the BTC Rating is calculated as:

(Bitcoin Reserves - Debt - Preferred Shares + USD Reserves) / Market Capitalization

In simple terms, this indicator measures the ratio of Bitcoin net reserves to the company’s market value. The numerator represents the actual Bitcoin assets owned by the company (after deducting debt and preferred shares), and the denominator is the company’s market valuation.

The core significance of the indicator

Essentially, this indicator answers a question: What proportion of the company’s market value is supported by Bitcoin reserves?

The higher the ratio, the greater the proportion of Bitcoin reserves in the company’s market value, indicating a higher “gold content.” This allows investors to more intuitively assess Strategy’s true value as a “Bitcoin treasury,” rather than just looking at the stock price.

Why did Strategy introduce this indicator

Part of the transparency strategy

From Saylor’s recent actions, launching the BTC Rating indicator is an extension of Strategy’s transparency strategy. According to related information, Strategy bought 13,627 Bitcoins in the past week, while miners only mined 3,150 during the same period. This indicates that Strategy continues to increase its Bitcoin reserves.

Standardizing an evaluation metric is like telling the market: Look, my value is in these Bitcoins, and you can use this tool to measure it.

Echoing the “Digital Credit” strategy

According to Saylor’s recent statements, Strategy aims to build a “Digital Credit” system—diversifying risk, suppressing volatility, shortening durations, conducting currency conversions, and extracting profits.

The BTC Rating indicator can be seen as the infrastructure for this strategy. When investors have a standardized valuation tool, it becomes easier to understand how Strategy creates value through Bitcoin reserves, laying the foundation for future credit product designs.

Market background and investment significance

Opportunity for valuation re-pricing

According to the latest assessment by TD Cowen analyst Lance Vitanza, Strategy’s current stock price is about $175, with a target price of $440, implying a 150% upside. Although this target has been lowered (from the original $500), it still reflects institutional optimism about Strategy’s long-term value.

The launch of the BTC Rating indicator could serve as a trigger for re-pricing—allowing more investors to evaluate Strategy’s true value using a unified standard.

Alignment with market demand

Related information shows that Strategy and the US spot Bitcoin ETF bought a total of 28,877 Bitcoins last week, while miners only mined 3,150. This means market demand far exceeds new supply.

In this context, as the main holder of Bitcoin, the improvement of Strategy’s valuation tools helps attract more institutional investors.

Summary

The launch of the BTC Rating indicator marks Strategy’s evolution from a Bitcoin holding company to a “Bitcoin infrastructure” provider. This indicator offers investors a new perspective to understand Strategy’s value—not only as a beneficiary of Bitcoin price fluctuations but also as a company redefining Bitcoin assets within enterprises through transparency tools.

Combined with Strategy’s continued increase in Bitcoin reserves and Saylor’s promotion of the digital credit strategy, this seemingly simple indicator reflects Strategy’s deep thinking about its positioning and market standing. For investors, it also provides a clearer evaluation dimension.