“Michael Saylor's New Bitcoin-Centric Fundraising Vision: 1% of the $300 Trillion Fixed Income Market”

“That's how the famous bitcoin bull Michael Saylor frames his latest fundraising vision.”

"There's $300 trillion of fixed income. I want 1% of it."

That's how the famous bitcoin bull Michael Saylor frames his latest fundraising vision. The company he founded, formerly known as MicroStrategy (MSTR) and now rebranded as Strategy, has become synonymous with aggressive bitcoin accumulation.

As of April 2025, the firm holds 506,137 BTC—valued at over $43 billion—representing 2.41% of the total supply that will ever exist. This bitcoin-centric strategy has sent MSTR shares soaring 2,500% over the past 5 years.

The accumulation spree has been fueled by a mix of retained software revenue, convertible debt, and equity offerings. Now, the company is expanding its playbook with two new securities: STRK and STRF.

Launched on February 5, 2025, STRK was Strategy's first preferred stock issuance. Initially targeting $250 million, the offering was upsized to $584 million in response to strong demand. STRK offers an 8% annual dividend and includes a conversion feature into MSTR Class A shares at a $1,000 strike price with a 1/10 conversion ratio. This hybrid structure caters to investors seeking both income and upside exposure to MSTR's equity performance. At the time of writing, MSTR trades at $300.

STRF, issued on March 25, 2025, targets a different investor profile. Designed as a pure income play, it raised $500 million via 5 million shares priced at $100. STRF pays a 10% fixed annual dividend, disbursed quarterly. Unlike STRK, STRF has no equity convertibility. It includes a compounding feature on unpaid dividends at an additional 1% per year, capped at 18%, and is perpetual with no maturity date. The structure is built for institutions—pension funds, insurers, and banks—who prioritize income over volatility.

Investors prefer yield

STRK was designed to streamline convertible debt fundraising, but STRF takes the concept further by tapping into the $300 trillion global fixed income market.

"The fact that STRF raised more than STRK (at a smaller discount) confirms ... that preferred investors only want yield, not MSTR volatility," explained Jeff Park of Bitwise Asset Management.

STRF is attracting investors who would normally stay clear of MSTR's volatile stock but are enticed by a 10% income stream. In today's economic environment, marked by economic and geopolitical uncertainty, the appetite for safe haven and high-yield instruments is evident.

With gold prices at their all-time high of $3,130 and the 10-year US Treasury yield falling (now 4.125%), STRF fits the narrative.

Still, there's skepticism about the investor base. While STRF raised half a billion dollars, it's unclear how much came from traditional fixed income managers versus hedge funds and retail players chasing arbitrage opportunities.

Is Strategy playing a dangerous game?

Some critics argue that at a 10% yield for STRF, the cost of capital is too high.

"Michael Saylor is going to bring the next Bitcoin bear market," crypto analyst Whale Panda quipped, highlighting the $50 million annual dividend obligation.

But Strategy has levers to manage this. The company generates $100-$150 million in annual software cash flow. More importantly, its $44.5 billion in bitcoin reserves offer substantial financial cushioning.

While Saylor insists MSTR has no plans to sell BTC, the firm could issue equity at a premium to net asset value (currently at 1.8, according to MSTR tracker) to fund preferred dividends.

The biggest risk is obvious: a prolonged bitcoin downturn. If BTC were to fall to $40,000, Strategy's war chest would shrink to $20 billion. That would make dividend coverage more burdensome, especially if MSTR's stock trades below NAV, weakening the company's ability to issue equity.

Yet STRF holders remain relatively insulated. Their claims rank above common shareholders, and the 10% coupon is backed by real assets. Even in a distressed scenario, STRF could remain above par, while equity holders bear the brunt. Of course, MSTR's capital model would stall, and accretion from new capital raises would dry up.

But here's the thing: investing in MSTR, STRK, or STRF presupposes a bullish view on bitcoin. These aren't neutral financial products—they are bitcoin-levered instruments, built for those who believe in BTC's long-term upside.

As Saylor put it, "We're distilling worthless fiat for the best asset