KEYTAKEAWAYS
- MicroStrategy (MSTR) has transitioned from a software firm to the largest corporate holder of Bitcoin, holding 555,450 BTC by May 2025.
- The company uses low-cost debt and equity to acquire BTC, increasing returns and boosting Bitcoin per share (BPS) for shareholders.
- MSTR functions as a leveraged Bitcoin proxy—offering greater upside in bull markets but also exposing investors to higher volatility.
CONTENT
MicroStrategy (MSTR) is a U.S. software firm turned Bitcoin powerhouse, holding 555,450 BTC and leveraging debt and equity to maximize long-term Bitcoin exposure.
In the world of traditional finance, few companies have made waves quite like MicroStrategy, a firm that has transformed itself from a business intelligence software provider into the most aggressive institutional holder of Bitcoin. Under the leadership of Executive Chairman Michael Saylor, MicroStrategy has embraced $BTC not just as an investment—but as a corporate treasury strategy.
WHAT IS MICROSTRATEGY (MSTR)?
MicroStrategy (NASDAQ: MSTR) is a U.S.-based enterprise analytics and cloud software company founded in 1989. While it initially gained recognition for its business intelligence tools, the company has become globally known for something very different in recent years: accumulating massive amounts of Bitcoin.
At first glance, you might expect a typical tech company. But look at its balance sheet, and you’ll find something unusual—billions of dollars in Bitcoin, far outweighing its software revenue in terms of market interest.
In February 2025, MicroStrategy announced a rebranding initiative—dropping “Micro” and officially changing its name to “Strategy.”
MicroStrategy is now Strategy. https://t.co/p6UvQgOvnz
— Michael Saylor (@saylor) February 5, 2025
>>> More to read: Who is Michael Saylor? Founder of MicroStrategy
WHY DOES MICROSTRATEGY KEEP BORROWING TO BUY BITCOIN?
This is not a speculative side project. It’s a carefully designed corporate strategy driven by a few key beliefs and tactics:
✅ 1. Bitcoin as Digital Gold
Michael Saylor views fiat currency as a depreciating asset. He believes cash held in the treasury is subject to inflation and long-term loss of value. Bitcoin, in contrast, is a scarce, decentralized, and deflationary asset.
Rather than let cash erode over time, MicroStrategy reallocates it into Bitcoin—seeing it not as speculation, but as a long-term store of value.
✅ 2. Strategic Leverage with Low-Cost Capital
MicroStrategy hasn’t just used its own funds to buy Bitcoin—it has skillfully raised capital through convertible bonds, equity offerings, and even traditional loans.
- Some bonds carried interest rates as low as 0.75%, while the acquired BTC appreciated far beyond that.
- This has allowed the company to use financial leverage to enhance long-term returns.
In short: borrow cheap money, buy hard assets.
✅ 3. Turning MSTR into a Bitcoin Proxy
Because of its Bitcoin-heavy balance sheet, MicroStrategy’s stock (MSTR) has become a proxy for Bitcoin exposure. Many institutional investors who cannot directly hold BTC are instead turning to MSTR.
As a result, MSTR often outperforms BTC in bull markets—making it one of the most volatile, yet attractive, Bitcoin-related equities.
✅ 4. Capturing Market Attention and Capital Flows
MicroStrategy’s bold moves have made it a focal point for media and institutional attention. This visibility has helped the company strengthen its brand and attract capital.
The strategy is high-risk, high-reward—but so far, it’s been a standout case of how traditional firms can navigate Web3-era finance.
>>> More to read: What is Bitcoin: A Comprehensive Overview
MICROSTRATEGY’S BITCOIN LEVERAGE STRATEGY
MSTR is widely seen as a leveraged Bitcoin exposure vehicle, but here’s an important distinction:
⚠️ While MSTR behaves like a leveraged Bitcoin asset, MicroStrategy’s actual financial leverage remains relatively conservative.
The market perception of leverage comes from how the company funds its BTC purchases, not from extreme debt levels.
📌 MicroStrategy’s playbook includes:
- ✅ Issuing convertible corporate bonds to raise cash
- ✅ Using the proceeds to buy Bitcoin
- ✅ Issuing new shares at a premium to raise more capital
- ✅ Using equity proceeds to accumulate more Bitcoin
This cycle aims to:
📈 Keep Bitcoin investment returns positive, while increasing Bitcoin per share (BPS) for shareholders.
Even if BTC stays flat, increasing BPS over time can create long-term value for equity holders.
>>> More to read: What is Bitcoin: A Comprehensive Overview
HOW MUCH BITCOIN DOES MICROSTRATEGY HOLD
- In 2025 YTD, MicroStrategy acquired 1,895 BTC at a total cost of $180.3 million, averaging $95,167 per BTC
- Bitcoin investment yielded a 14.0% return YTD in 2025
- As of May 4, 2025, the company holds a total of 555,450 BTC
- The total acquisition cost is approximately $38.08 billion, with an average purchase price of $68,550 per BTC
$MSTR has acquired 1,895 BTC for ~$180.3 million at ~$95,167 per bitcoin and has achieved BTC Yield of 14.0% YTD 2025. As of 5/4/2025, we hodl 555,450 $BTC acquired for ~$38.08 billion at ~$68,550 per bitcoin. $STRK $STRF https://t.co/rusgfuyCTG
— Michael Saylor (@saylor) May 5, 2025
FAQ
Q: What is MSTR?
A: MSTR is the stock ticker for MicroStrategy, a U.S.-listed public company. It effectively functions as a securitized, leveraged Bitcoin exposure.
Q: What are the benefits of holding MSTR?
A: MSTR offers leveraged Bitcoin exposure—when BTC goes up, MSTR often rises even more. Also, as long as MicroStrategy keeps Bitcoin returns positive, Bitcoin per share (BPS) increases over time—even if BTC price remains stagnant.
Q: What are the risks of MSTR?
A: MSTR is more volatile than BTC itself—when BTC drops, MSTR typically drops even more. It’s also still a company stock, subject to corporate risk, performance, and regulatory impact. MSTR is not Bitcoin, but rather a financial vehicle tied to it.
Q: Why does MicroStrategy keep borrowing money to buy Bitcoin?
A: Beyond ideology, the goal is to:
1️⃣ Preserve MSTR’s role as a leveraged BTC proxy
2️⃣ Enhance BTC yield via low-cost financing
As long as BTC outpaces interest rates, the strategy remains profitable.
Q: What if Bitcoin goes to zero?
A: Those worried about Bitcoin collapsing are unlikely to buy MSTR in the first place. MSTR investors are typically long-term BTC believers. Risk-averse investors may prefer convertible bonds; high-risk investors may look to MSTR options or direct equity.
▶ Buy Crypto at Bitget
ꚰ CoinRank x Bitget – Sign up & Trade!
