Strategy—once known as MicroStrategy—is no longer just another enterprise software company. While it began as a business intelligence (BI) solutions provider, it has undergone a radical transformation into the world’s largest corporate holder of Bitcoin. With approximately 581,000 BTC in its treasury—worth around $63 billion as of early June 2025—its Bitcoin holdings now dwarf its annual software revenue of roughly $463 million. This seismic shift has redefined both its financial strategy and public identity.
Founder and CEO Michael Saylor now refers to the company as a “Bitcoin Treasury Company,” a vision made official with its 2025 rebranding. The bold orange aesthetic of its new branding mirrors Bitcoin’s own visual language, signaling a full embrace of its new role in the digital asset economy.
👉 Discover how companies are turning Bitcoin into a strategic treasury asset.
From Enterprise Software to Bitcoin Powerhouse
Founded in 1989 by Michael Saylor, Strategy built its early reputation on data analytics and business intelligence tools. Throughout the 1990s, it secured major contracts with global brands like McDonald’s, leveraging its data-mining capabilities. The company went public in 1998 and briefly propelled Saylor into billionaire status during the dot-com boom.
However, an accounting scandal in 2000 nearly derailed the company, resulting in a settlement with the U.S. Securities and Exchange Commission. After recovering, Strategy gradually shifted toward cloud-based analytics, maintaining a steady but unspectacular presence in the tech sector.
The real turning point came in August 2020, when Saylor announced the deployment of $250 million in idle corporate cash into Bitcoin. Citing concerns over currency devaluation and inflation, he framed Bitcoin as “digital gold”—a superior store of value compared to fiat currencies.
This initial purchase marked the beginning of an aggressive accumulation strategy. Over the next five years, Strategy continued buying Bitcoin in waves, funding purchases through debt and equity offerings rather than operational cash flow. The result? A staggering 581,000 BTC—nearly 3% of all Bitcoin ever mined.
How Strategy Funds Its Bitcoin Strategy
Today, Strategy rarely uses cash to buy Bitcoin. Instead, it relies on sophisticated financial instruments to scale its holdings:
Zero-Coupon Convertible Notes
These debt instruments pay no interest (hence “zero-coupon”) and can be converted into company stock at a premium if the share price rises. For Strategy, this means access to low-cost capital—effectively free money—as long as its stock performs well.
Wall Street has taken notice. Bloomberg reported that Strategy’s repeated issuance of these notes has helped fuel a surge in convertible arbitrage trading, now one of the most popular strategies among hedge funds.
Equity Issuance at Scale
In Q1 2025 alone, Strategy raised $7.7 billion through new share offerings, using the proceeds to acquire an additional 22,048 BTC at an average price of $87,000 per coin. This strategy hinges on a simple premise: if Bitcoin appreciates faster than shares are diluted, shareholders win.
To track this growth, Strategy emphasizes two key metrics:
- Bitcoin-per-share (BPS): The ratio of total BTC held to diluted shares outstanding. Increasing BPS means each share represents more Bitcoin over time.
- Bitcoin yield: The rate at which BPS grows period-over-period—a measure of how quickly the company is compounding shareholder value through BTC accumulation.
👉 Learn how financial innovation is reshaping corporate treasury management.
Risks and Market Realities
While the strategy is bold, it’s not without significant risks.
If Bitcoin prices fall sharply, the math breaks down. A 30% drop in March 2025 triggered an unrealized loss of $5.9 billion, sending shockwaves through Strategy’s stock price. Analysts warn that prolonged bear markets could strain cash flow and force asset sales or emergency refinancing—actions that would further dilute existing shareholders.
Additionally, the zero-coupon convertible notes contain clauses allowing bondholders to demand repayment during periods of extreme volatility. In a crisis scenario, this could create a dangerous feedback loop: falling BTC prices → falling stock price → bond redemptions → forced selling → further declines.
Despite these risks, Strategy’s recent inclusion in the Nasdaq-100 index provides a buffer. Passive index funds tracking the index are now required to hold Strategy shares, adding institutional demand that may help stabilize its price during downturns.
Beyond Bitcoin: What About the Software Business?
It’s easy to overlook, but Strategy still operates a thriving software division.
The Strategy One platform delivers AI-powered business intelligence and data analytics services to enterprises worldwide. Subscription revenue has grown steadily, proving that the core business remains viable—even if it’s now overshadowed by Bitcoin.
The company also hosts Strategy World, an annual tech conference that in 2025 spotlighted new generative AI integrations into its analytics suite. These innovations suggest that while Bitcoin dominates the balance sheet, the software arm continues evolving.
Still, investors should recognize: Strategy is no longer valued primarily for its software. Its market capitalization of $105.28 billion reflects a massive premium—nearly 70%—over the value of its Bitcoin holdings alone.
Compare that to traditional closed-end funds, where a 10% premium is considered high, or the Grayscale Bitcoin Mini Trust ETF (BTC), which trades at a 3.2% discount to net asset value. For every dollar invested in Strategy, you’re getting only about $0.59 worth of direct Bitcoin exposure—less than par value.
Frequently Asked Questions
Q: Is Strategy still a software company?
A: Yes. Strategy continues to develop and sell its AI-driven analytics platform, Strategy One. However, its financial strategy and market valuation are now dominated by its Bitcoin holdings.
Q: How much Bitcoin does Strategy own?
A: As of early 2025, Strategy holds approximately 581,000 BTC—nearly 3% of all Bitcoin ever mined.
Q: How does Strategy afford to buy so much Bitcoin?
A: It raises capital through zero-coupon convertible notes and equity offerings, using the proceeds to purchase BTC rather than relying on software profits.
Q: Is investing in Strategy the same as investing in Bitcoin?
A: Not exactly. While Strategy provides exposure to Bitcoin, its stock trades at a significant premium. You’re also exposed to corporate risk, leverage, and equity dilution not present in direct BTC ownership.
Q: What happens if Bitcoin’s price drops?
A: A sharp decline could trigger unrealized losses, pressure on debt covenants, and potential forced sales or refinancing—amplifying downside risk due to financial leverage.
Q: Why did Strategy change its name?
A: The rebrand from MicroStrategy to Strategy reflects its evolution into a Bitcoin-focused treasury company, aligning its public identity with its core financial strategy.
👉 See how institutional investors are integrating digital assets into their portfolios.
Final Thoughts
Strategy has evolved from a niche business intelligence vendor into a highly leveraged proxy for Bitcoin exposure. Its aggressive treasury policy—fueled by debt and equity—has positioned it as a pioneer in corporate digital asset adoption.
If Bitcoin continues its upward trajectory, shareholders stand to benefit from compounded gains amplified by financial leverage. But if the market turns bearish, the same leverage could magnify losses.
For investors, Strategy represents more than just tech—it’s a bet on macroeconomic trends, monetary policy skepticism, and the long-term viability of Bitcoin as institutional-grade digital gold.
Whether this bold experiment pays off will depend not just on technology or software innovation, but on the unpredictable forces shaping global finance in 2025 and beyond.
Core Keywords: Strategy, MicroStrategy, Bitcoin treasury, corporate Bitcoin ownership, zero-coupon convertible notes, Bitcoin-per-share, financial leverage, digital gold