Strategy, recently renamed from MicroStrategy Incorporated, is the largest publicly traded corporate owner of Bitcoin

MicroStrategy Incorporated, recently renamed as Strategy, is the largest publicly traded corporate owner of Bitcoin, with 528185 BTC purchased at an average price of $67458

MicroStrategy Incorporated, which recently renamed itself as Strategy, stands as the largest publicly traded corporate holder of Bitcoin. To date, the firm has purchased 528,185 BTC at an average price of $67,458, resulting in a total acquisition cost of $35.63 billion.

As of April 2025, its Bitcoin holdings are valued at approximately $41.3 billion, with the most recent purchase of 22,048 BTC for $1.92 billion on March 30 at $86,969 per BTC. Bitcoin has now become Strategy’s primary treasury reserve asset, and its BTC Yield—a key performance indicator (KPI) measuring Bitcoin per share—experienced a 11% year-to-date (YTD) increase during Q1, aiming for 15% annually until 2027.

Microstrategy SEC filing

Recent SEC filings highlight the volatility associated with Strategy’s Bitcoin model. During Q1 2025, the firm incurred a $5.91 billion unrealized loss due to a price decline to $77,351, which was partially offset by a $1.69 billion tax benefit.

The company’s capital structure involved raising $8.65 billion through equity and debt since 2020 to fund ongoing Bitcoin acquisitions. Notably, the firm secured $2 billion in February 2025 by issuing zero-coupon convertible notes due in 2030. Strategy also went public with a preferred stock (STRK) offering during Q4 2024, raising $584 million.

Despite volatility, the firm’s overall Bitcoin holding is still in profit, with an unrealized gain of 14.62%. However, its software segment continues to lag, reporting $120.7 million in Q4 2024 revenue, down 3% year-over-year (YoY), and failing to generate positive operating cash flow. The firm heavily relies on financing for its operations and Bitcoin purchases, having executed a 10-for-1 stock split in July 2024 to increase share availability.

At present, liquidation risk appears contained. With $8.2 billion in unsecured loans and no collateralized loans for Bitcoin, Strategy could potentially repay all of its debt by selling 15% of its BTC at current market prices.

Bitcoin through shares

Executive Chairman Michael Saylor’s 46.8% voting share ensures the continuation of the Bitcoin-first strategy, and he asserts that even a decline in Bitcoin’s price wouldn’t trigger a selloff.

Strategy’s equity and debt offering-based fund conversion strategy—utilising stock and note issuance to purchase BTC—has been described by some as an “infinite money glitch.” Strategy purchases additional Bitcoin by issuing stock and notes at a premium, which in turn drives up both BTC and MSTR’s stock.

This model is contingent upon investor confidence and sustained appreciation of Bitcoin. Any prolonged decline in Bitcoin’s price may hamper the firm’s ability to raise capital or service its obligations.

Critics highlight the potential for centralization, considering the firm’s capital gains tax burden of $18 billion and the attention it may draw from regulatory bodies like the SEC. In 2024, the company’s stock experienced a 336% surge, although it later declined by 55% from a high of $543 in November to $250 by February 2025.

In essence, Strategy’s aggressive Bitcoin approach continues to yield returns but carries a high risk of exposure to market volatility, debt, and regulatory issues. The success of this strategy will depend on the long-term trend of Bitcoin and Saylor’s unwavering commitment to the “never sell” mantra.