Overview
Strategy (formerly MicroStrategy, Nasdaq: MSTR) is a Tysons Corner, Virginia-based company that describes itself as “the world’s first and largest Bitcoin Treasury Company.” Originally an enterprise analytics software firm, it pivoted under Executive Chairman Michael Saylor to make Bitcoin its primary treasury reserve asset. As of July 2025, Strategy holds 628,791 BTC — the largest corporate Bitcoin holding in the world.
Key Facts
- Ticker: MSTR (common), STRK (8% perpetual preferred), STRF (10% perpetual preferred), STRD (10% perpetual preferred), STRC (variable rate preferred).
- 628,791 BTC held as of July 29, 2025; total cost basis $46.07B (~$73,277/BTC average).
- Q2 2025: $14.03B operating income (7,106% YoY); $10.02B net income — both driven by unrealized Bitcoin gains.
- FY2025 guidance: $34B operating income, $24B net income, $80 EPS — assumes $150,000 BTC at year-end.
- Michael Saylor (Executive Chairman) coined “Bitcoin Treasury Company” concept.
- Phong Le (CEO), Andrew Kang (CFO).
- BTC Yield metric: 25% YTD through Q2 2025; revised full-year target: 30%.
- Capital raised in Q2: ~$6.8B (ATM programs + IPOs); additional $3.7B July 1-29.
- STRC: “world’s first Treasury Preferred Stock” — variable-rate monthly dividend; July 2025 IPO raised $2.5B.
- Switched to ASU 2023-08 fair value accounting for crypto at start of 2025 — unrealized BTC gains now flow through the income statement.
- Software revenues: ~$114.5M/quarter (2.7% YoY growth); the original business is a rounding error on the Bitcoin portfolio.
Newsletter Relevance
Strategy is the corporate proof-of-concept for the Bitcoin as Digital Gold thesis taken to its logical extreme: a publicly traded company has essentially converted itself into a leveraged Bitcoin investment vehicle. The preferred stock innovations (STRK, STRF, STRD, STRC) are creating a new financial product category — fixed-income exposure to Bitcoin volatility. If the thesis holds, Strategy may generate more EPS than most S&P 500 companies purely from Bitcoin price appreciation. If Bitcoin falls sharply, the preferred dividends create a liability. It’s a high-stakes financial experiment with public accountability.
Connections
- Strategic Bitcoin Reserve — Strategy is the corporate parallel to the U.S. sovereign Bitcoin reserve
- Bitcoin as Digital Gold — Strategy operationalizes this thesis at corporate scale
- Federal Reserve — implicit counterparty; Strategy bets against fiat debasement
Source Appearances
- Strategy Q2 2025 Financial Results Bitcoin Treasury Company — Q2 2025 results and capital framework
Open Questions
- Does Strategy’s mNAV trading discipline (won’t issue below 2.5x Bitcoin NAV) create reflexive loops in Bitcoin price during market stress?
- What happens when preferred dividends (STRK, STRF, STRD, STRC) create cash obligations that require Bitcoin sales or stock dilution at unfavorable times?
- Will the SEC scrutinize the ASU 2023-08 accounting change that allows $14B in paper gains to appear as “operating income”?