Strategy, a company that rebranded from MicroStrategy in February 2025, operates as a Bitcoin Treasury Company. Its primary strategy involves accumulating Bitcoin as its main treasury reserve asset. Strategy raises capital through equity and debt financings, as well as operational cash flows, and then uses these funds to purchase Bitcoin. The company holds approximately 650,000 BTC, which is about 3.1% of the total Bitcoin supply.
Strategy's approach is designed to offer investors varying degrees of economic exposure to Bitcoin through different securities, including equity and fixed-income instruments. This strategy has been described as a "leveraged macro bet on Bitcoin," where the company's stock price can amplify gains in a bull market but also magnify losses in a downturn. Metrics like Bitcoin per Share (BPS) and Bitcoin Yield are used to track the company's performance in increasing its Bitcoin holdings per share.
While Strategy's software business is still operational, its Bitcoin holdings significantly outweigh its annual software revenue. Some analysts have raised concerns about the company's reliance on Bitcoin's price appreciation to sustain its financial model, especially given its debt obligations and potential for equity dilution. However, supporters view Strategy as a pioneering digital-asset treasury.
