Should you’ve interacted with the MicroStrategy (MSTR) group, chances are high you’ve encountered a whole linguistic set that baffles even skilled buyers.
Simply as Gamestop (GME) meme inventory buyers created their very own phrases inside their Wall Road Bets sub-reddit dictionary, so too have Irresponsibly Lengthy MSTR buyers on the social media platform X.
In 2021, Roaring Kitty and Gamestop retail buyers coined new phrases like “stonks,” “tendies,” and “diamond hands.” Over the previous couple of years, Michael Saylor and MSTR buyers have equally repurposed phrases like “torque,” “black hole,” and “net asset value.”
Beneath is a brief dictionary of phrases that Saylor has repurposed from acquainted ideas.
A dictionary for MicroStrategy shareholders
Torque: A measurement of worth generated for shareholders per greenback raised.
Extra particularly, it’s the leveraged sensitivity of MSTR to bitcoin (BTC) worth actions and is borrowed from the idea of torque in a transmission system — the effectivity of a company engine to leverage its capital construction to build up BTC.
Mathematically, torque is calculated by dividing the US greenback (USD) worth of an organization’s BTC by the USD deployed to amass it.
Bitcoin yield: The share change in BTC holdings relative to the corporate’s assumed diluted shares.
Assumed diluted shares: The quantity of widespread inventory that might be hypothetically circulating if all excellent choices, restricted inventory, efficiency inventory, convertible bonds, and convertible preferreds exercised their conversion rights.
Bitcoin achieve: The variety of BTC originally of the interval multiplied by the yield over that interval.
Black gap: The alleged affect of MicroStrategy’s non-dilutive most well-liked shares — invented after the corporate’s third sequence of dividend-yielding most well-liked shares, Stride (STRD).
As a result of dividend-yielding preferreds don’t dilute widespread shareholders and thus present splendid “torque,” MicroStrategy might allegedly create a monetary black gap, assuming world demand for BTC worth publicity will go parabolic.
Countless methods to explain a leveraged guess on BTC
ATMs: At-the-market widespread inventory choices that dilute widespread stockholders to purchase BTC. Previous to the summer season of 2025, ATMs have been the biggest capital-raising exercise at MicroStrategy.
Accretive dilution: An try and buck the same old development of share worth decline when issuing new shares. Though ATMs would usually dilute shareholders $1 for each $1 of BTC acquired, accretive dilution captures among the mNAV premium (see under) such that ATMs turn out to be barely accretive.
mNAV: An acronym for “multiple to net asset value” and calculated as the corporate’s market capitalization divided by the worth of its bitcoin holdings with no regard for debt or encumbrances.
MicroStrategy’s highest mNAV over the previous 12 months was about 3.4 on November 20, and is at the moment 1.7.
The upper the mNAV, the extra bullish MSTR buyers are.
MmC: mNAV months-to-cover: Adam Again invented this acronym of an acronym as a valuation metric for BTC treasury firms like MicroStrategy.
The time period forecasts the variety of months it’ll take an organization to “cover” or “make up” for its in any other case excessive mNAV above one.
