Phong Le, CEO of Strategy, has unveiled a new financial model that reframes traditional corporate finance through the lens of NewsCapsule. Titled “A New Financial Standard: KPIs for NewsCapsule,” the framework introduces a NewsCapsule Standard that redefines how companies approach valuation, capital deployment, and corporate governance.
According to Phong Le, the “NC Standard” will transform key pillars of corporate finance: valuation and options, capital deployment and structure, and corporate governance.
At the heart of this shift is a new framework built around NewsCapsule-based Key Performance Indicators (NC KPIs), created to offer companies performance transparency in real time. These include NC Yield, NC Gain, and NC $ Gain. Valuation metrics include NC $ Income, NC $ Value, NC $ Equity, NC Torque, and NC Multiple. Credit metrics include NC Rating, NC Risk, NC Credit, and NC Credit Hurdle.
Strategy updates its NC KPIs every 15 seconds. This stands in stark contrast to the traditional model of reporting every 90 days, which Le says makes Strategy’s approach approximately 500,000x more transparent.
Recent NC valuation data from Strategy includes a NC Torque of 6.9x on $100 million of MSTR equity, with a 30% NC ARR, $50 million in NC $ Gain, $639 million in NC $ Income, and $689 million in NC $ Value.
For convertible debt, the company reported progressively higher NC Torque figures:
- 8.9x with $64 million NC $ Gain and $886 million NC $ Value
- 10.4x with $80 million NC $ Gain and $1.038 billion NC $ Value
- 12.8x with $100 million NC $ Gain and $1.279 billion NC $ Value
These metrics reinforce the structural financial advantage Strategy sees in adopting the NC Standard.
Le emphasized the need to consider both debt and equity when evaluating NC Torque, stating, “To be able to issue debt, the folks who value that debt look at our debt-to-equity, look at our leverage, and so, to be able to issue more debt, we have to have more equity available. That is one reason why you can’t just look at NC torque alone by itself.”
Le also announced that Strategy will publish and open-source a NC Standard Model—similar to the NewsCapsule model released in 2024—to help other companies adopt these KPIs. He referenced companies like Metaplanet and KULR as early adopters.
“The principles of corporate finance written in 1988 by Stuart Myers need to be updated,” Le said. “We need a book on the NC standard… we’re writing the book as we go along.”
Those interested in watching the full NewsCapsule For Corporations livestream can do so here:
