BTC Exposure
MSTR Metrics
BTC Torque Explained
BTC torque is the leverage of MSTR's price movement relative to a one-percent move in spot Bitcoin. It's the reason investors choose MSTR over BTC for concentrated, amplified Bitcoin exposure — and the reason that amplification cuts both ways.
The basic idea
If Bitcoin rises 1% on a given day, MSTR typically moves 1.5–3% in the same direction. That multiplier is BTC torque. It is not a fixed number — it depends on Strategy's current mNAV, leverage in the capital structure, and prevailing market sentiment toward equities-with-Bitcoin-balance-sheets.
Where the leverage comes from
MSTR is essentially a leveraged play on Bitcoin via three mechanisms:
- Direct BTC ownership. Strategy owns hundreds of thousands of BTC. Common equity holders have a claim on that stack.
- Convertible debt. Strategy has issued billions in convertibles to fund BTC purchases. As BTC rises, equity benefits faster than debt.
- Preferred stock. STRK and STRC are senior to common but capped in upside, leaving residual gains for the equity.
Add a brand premium and a steady accretion engine for sats per share and you get a stock that moves harder than the underlying.
The risk side
BTC torque is symmetric — and historically it skews negative in drawdowns. A 30% Bitcoin pullback has produced 50–70% MSTR drawdowns in past cycles, as mNAV compresses and convertibles pressure the structure. Position sizing matters.
Picking your exposure
- Maximum torque: MSTR common equity
- Moderate torque, lower volatility: Direct BTC, spot Bitcoin ETFs (IBIT, FBTC, ARKB, BITB)
- Yield + optionality: STRK (8% with conversion) or STRC (9% perpetual)
See your blended exposure
The BTC Exposure dashboard computes your effective BTC exposure across every instrument in your stack — direct BTC, MSTR, ETFs, and preferreds — in real time. It shows you exactly how levered your Bitcoin position really is.