Strategy, formerly MicroStrategy, owns 581,000 bitcoin valued at $63 billion. The figure dwarfs the $463 million the company earns each year from software licences, maintenance along with cloud subscriptions. All figures reflect market prices and filings dated 2 June 2025.
Founder and chief executive Michael Saylor now calls Strategy a âbitcoin treasury company.â The phrase became the legal corporate name in January 2025. To build the position, Strategy issued $9.4 billion of zero coupon convertible notes and sold $14.2 billion of new common stock. The manoeuvre turned the enterprise into a leveraged wager on the digital asset.
The company still sells an artificial-intelligence-driven business intelligence platform branded Strategy One. Annual recurring revenue from the software totals $463 million. Yet bitcoin defines the balance sheet and the public reputation.
Strategy controls 2.9 percent of all bitcoin that will ever circulate. Convertible notes supplied most of the capital. During the 1990s the firm won data mining contracts with McDonald’s, JCPenney in addition to the U.S. Department of Defense. The 1998 initial public offering valued the equity at $1.2 billion and briefly made Saylor a paper billionaire. An accounting restatement in 2000 erased $80 million of previously reported profit, triggered a Securities but also Exchange Commission civil action, and pushed the share price from $333 to $3. After the near bankruptcy the company rebuilt around cloud analytics.
In August 2020 Saylor moved $250 million of idle cash into bitcoin – citing Federal Reserve balance sheet expansion. Subsequent purchases used corporate cash – debt – equity. Each announcement lifted the share price and validated the next capital raise.
Strategy no longer pays cash for coins. Instead it issues convertible notes with maturities between five and seven years. The notes carry no coupon and convert into stock at premiums of 25 to 40 percent above the reference price. Bondholders accept the terms because the embedded call option on bitcoin appreciation trades at a lower implied volatility than the CME futures curve.
In the first quarter of 2025 Strategy sold $7.7 billion of new shares and acquired 22,048 bitcoin at an average price of $87,000. The company publishes a slide deck that tracks bitcoin per share, defined as coins held divided by fully diluted shares outstanding. Rising bitcoin per share signals that each equity unit represents a larger fraction of the fixed 21 million coin supply.
The convertible notes expose shareholders to reflexive risk. A sustained fall in the bitcoin price would compress the conversion value of the bonds. Holders could then demand cash redemption at par. The zero coupon structure amplifies the danger because the company set aside no sinking fund. A redemption event would force asset sales or dilutive equity issuance at depressed prices.
Strategy joined the S&P 500 in March 2025. Index funds tracking the benchmark now hold 8 percent of the float. The inflow provides a bid during sell offs but does not eliminate the leverage embedded in the capital structure.
At a market capitalisation of $105.28 billion the equity trades at a 68 percent premium to net asset value. Each dollar invested in Strategy stock secures $0.59 of bitcoin exposure. The Grayscale Bitcoin Mini Trust ETF trades at a 3.2 percent discount to net asset value. Each dollar invested in the ETF secures $1.03 of bitcoin exposure. Closed-end bitcoin funds historically command premiums of 5 to 10 percent. Strategy’s premium exceeds that range by a factor of six.
Strategy One, the analytics suite, added 240 enterprise customers in 2024. Revenue grew 12 percent year-over-year. The product embeds large-language-model agents that generate SQL queries from natural language prompts. Strategy World, the annual user conference held in May 2025, showcased a new feature that converts dashboard snapshots into TikTok-length video summaries for mobile executives.
The company has evolved from a mid tier software vendor into a leveraged bitcoin holding company that still sells analytics software. If the bitcoin price rises, the equity price rises faster because of embedded leverage in the convertible notes and the equity optionality. If the bitcoin price falls, the same leverage accelerates losses and could trigger forced asset sales or dilution.