Whenever you occur to’ve interacted with the MicroStrategy (MSTR) neighborhood, chance is you’ve encountered a total linguistic role that baffles even experienced investors.
Factual as Gamestop (GME) meme stock investors created their very own terms inside their Wall Avenue Bets sub-reddit dictionary, so too be pleased Irresponsibly Prolonged MSTR investors on the social media platform X.
In 2021, Roaring Kitty and Gamestop retail investors coined new terms love “stonks,” “tendies,” and “diamond fingers.” Over the last few years, Michael Saylor and MSTR investors be pleased equally repurposed words love “torque,” “sad hole,” and “glean asset cost.”
Underneath is a transient dictionary of words that Saylor has repurposed from familiar ideas.
A dictionary for MicroStrategy shareholders
Torque: A size of cost generated for shareholders per greenback raised.
More namely, it’s the leveraged sensitivity of MSTR to bitcoin (BTC) label movements and is borrowed from the concept that of torque in a transmission intention — the efficiency of an organization engine to leverage its capital structure to earn BTC.
Mathematically, torque is calculated by dividing the US greenback (USD) cost of an organization’s BTC by the USD deployed to plot it.
Bitcoin yield: The share trade in BTC holdings relative to the company’s assumed diluted shares.
Assumed diluted shares: The amount of normal stock that could well be hypothetically circulating if all prominent alternatives, restricted stock, performance stock, convertible bonds, and convertible preferreds exercised their conversion rights.
Bitcoin carry out: The replacement of BTC first and most critical of the interval multiplied by the yield over that interval.
Read extra: MicroStrategy bulls sing Michael Saylor can pump it to 10X its BTC
Black hole: The alleged impact of MicroStrategy’s non-dilutive most new shares — invented after the company’s third collection of dividend-yielding most new shares, Trot (STRD).
Because dividend-yielding preferreds don’t dilute normal shareholders and thus provide excellent “torque,” MicroStrategy could well allegedly plot a monetary sad hole, assuming international demand for BTC label publicity will budge parabolic.
Never-ending programs to picture a leveraged bet on BTC
ATMs: At-the-market normal stock offerings that dilute normal stockholders to buy BTC. Sooner than the summer time of 2025, ATMs had been the largest capital-elevating exercise at MicroStrategy.
Accretive dilution: An are trying to buck the identical outdated pattern of portion label decline when issuing new shares. Though ATMs would generally dilute shareholders $1 for every and each $1 of BTC got, accretive dilution captures some of the mNAV top charge (peek below) such that ATMs develop into a minute accretive.
mNAV: An acronym for “extra than one to glean asset cost” and calculated as the company’s market capitalization divided by the price of its bitcoin holdings and not using a regard for debt or encumbrances.
MicroStrategy’s absolute best mNAV at some level of the final year was as soon as about 3.4 on November 20, and is for the time being 1.7.
The elevated the mNAV, the extra bullish MSTR investors are.
MmC: mNAV months-to-quilt: Adam Aid invented this acronym of an acronym as a valuation metric for BTC treasury corporations love MicroStrategy.
The interval of time forecasts the replacement of months this can even unprejudiced rob an organization to “quilt” or “impact up” for its in every other case excessive mNAV above one.
