According to TechFlowPost on June 14, Strategy Chairman Michael Saylor published an explanation of two core metrics used in the company’s capital structure analysis: BPS, or Bitcoin Per Share, and CEBE BPS. His post focused on how investors should interpret shareholder exposure when a company continues to accumulate Bitcoin through a financing structure that includes different layers of claims.
BPS reflects the Bitcoin growth attached to common equity
Saylor said BPS measures the amount of Bitcoin attributable to common stock before deducting senior claims. In his explanation, this metric is more aligned with a long-term growth perspective. It shows how much Bitcoin reserve growth corresponds to each share of equity after the company uses financing methods such as issuing debt and selling additional shares to continue increasing its Bitcoin holdings.
Strategy’s commonly used BTC Yield metric is based on BPS and is used to measure the effect of capital operations. In this framework, BPS is not simply a snapshot of total holdings; it is a way to evaluate how Strategy’s financing and Bitcoin accumulation activities change the Bitcoin amount associated with common equity over time.
CEBE BPS applies a more conservative risk lens
By contrast, CEBE BPS uses a more conservative calculation method. Saylor explained that after deducting all senior claims, including debt, convertible bonds and preferred stock, the metric measures the final actual per-share Bitcoin risk exposure enjoyed by common shareholders. He defined CEBE BPS as an important reference for evaluating risk.
Saylor further noted that the relative importance of the two metrics is closely tied to the maturity structure of the company’s liabilities. If debt maturities are short, CEBE BPS has higher reference value because it better reflects the real condition of remaining equity for common shareholders if debt were due immediately. When liabilities have longer maturities, BPS carries more meaning, because over the long term, a rise in the Bitcoin price has the opportunity to cover financing costs as well as accrued interest, dividends and other expenses.
He emphasized that investors should not evaluate Strategy’s value by simply dividing “the total amount of Bitcoin held by the company by the total share count.” For companies that use complex financing structures to keep accumulating Bitcoin, capital structure analysis is an important part of understanding the actual shareholder equity and risk exposure attached to common stock.