What Is Strategy (MSTR)? The Bitcoin Treasury Company

At the moment, Technique is without doubt one of the most vital establishments in cryptocurrency, however it didn’t begin out that approach. Initially known as MicroStrategy, the corporate co-founded by Michael Saylor—probably the most influential figures on the planet of Bitcoin—first made its mark in software program.

Now, nevertheless, it’s greatest recognized for its aggressive technique of buying Bitcoin for its company reserves, with Saylor turning into a key figurehead for the institutional adoption of the asset.

Right here’s all the pieces else it’s essential to learn about Technique and its relationship with Bitcoin.

What’s Technique?

Earlier than it added Bitcoin to its stability sheet, Technique was greatest recognized for its enterprise intelligence software program options, which have been designed to assist companies extra simply analyze knowledge for improved choice making.

Based in 1989 by Michael Saylor, Technique shortly grew to become profitable, going public and buying and selling on the NASDAQ in 1998 as MSTR. However simply two years later, Saylor and two different high executives at Technique needed to settle a case with the SEC, which alleged that the corporate had “materially overstated revenues and earnings from the gross sales of software program and data providers.”

After a short spike in its share worth in 2000, MSTR traded in a decent vary for the subsequent twenty years, solely starting to make a serious transfer upwards on the finish of 2020—the identical 12 months it introduced its first Bitcoin buy.

Till early 2025, Saylor’s firm operated as MicroStrategy—however dropped the “Micro” in February, choosing a extra highly effective and optimistic tone with simply Technique. The rebrand grew to become synonymous with the favored The Social Community movie reference by which Mark Zuckerberg is suggested to the drop “The” from “The Fb.”

Technique’s Bitcoin treasury reserve

In 2020, Technique made a groundbreaking transfer: the corporate adopted Bitcoin as its main treasury reserve asset. Involved in regards to the devaluation of the USA greenback and fiat foreign money resulting from inflation, Saylor spearheaded the corporate’s first buy of $250 million in Bitcoin as a hedge in opposition to financial uncertainty.

“This funding displays our perception that Bitcoin, because the world’s most widely-adopted cryptocurrency, is a reliable retailer of worth and a horny funding asset with extra long-term appreciation potential than holding money,” he mentioned on the time.

The corporate’s Bitcoin shopping for technique has advanced over time and shifted to primarily utilizing the sale of convertible notes to boost funds to purchase extra Bitcoin. In different phrases, Technique makes use of short-term debt raises by way of convertible notes that permit buyers to ultimately money in for Technique inventory. It then makes use of the funds raised from the sale of the notes to purchase Bitcoin.

This technique has finally been adopted by different publicly traded corporations like MARA, Metaplanet and Riot Platforms. In December 2024, Saylor likened this technique to the event of Manhattan actual property, telling CNBC that, “Each time Manhattan actual property goes up in worth, they situation extra debt to develop extra actual property.”

The agency signaled in October 2024 that it has no plans on slowing down sooner or later. At the moment, Technique introduced plans to boost as much as $42 billion with a purpose to add extra of the main cryptocurrency asset to its stability sheet.

In search of extra although, the agency handed a vote in January 2025 to implement a 30x improve of its Class A typical shares, permitting it so as to add much more Bitcoin than initially deliberate.

Days later, the corporate introduced the providing of a brand new inventory, Strike (STRK)–as a brand new approach for it to boost cash to purchase Bitcoin. Promoting shares for $80 a chunk, the agency aimed to seize one other $584 million for Bitcoin purchases to construct out its treasury. The agency introduced one other $2 billion convertible senior notes sale in February 2025.

All year long, the agency would launch extra most popular inventory choices to assist fund its Bitcoin purchases, granting various kinds of buyers entry to totally different risk-adjusted merchandise like Stretch (STRC), Stride (STRD), Strife (STRF), and Stream (STRE) along with Strike.

The technique of elevating debt to purchase Bitcoin has finally been adopted by different publicly traded corporations like MARA and Riot Platforms. In December, Saylor likened this technique to the event of Manhattan actual property, telling CNBC that, “Each time Manhattan actual property goes up in worth, they situation extra debt to develop extra actual property.”

As Technique has turn out to be ever extra intently intertwined with Bitcoin, the corporate now refers to itself because the “World’s First and Largest Bitcoin Treasury Firm” by way of its investor relations web page.

Michael Saylor, Bitcoin convert

Although Michael Saylor is now one of many loudest voices advocating for Bitcoin, he wasn’t all the time a Bitcoin bull.

Simply seven years earlier than his firm adopted the crypto as its primary reserve asset, Saylor tweeted that “#Bitcoin days are numbered. It looks as if only a matter of time earlier than it suffers the identical destiny as on-line playing.”

Since then, Saylor has finished an entire 180°, claiming Bitcoin is one of the best long-term asset to carry whereas committing to “shopping for the highest eternally,” referring to persistently buying the asset at its peak costs—which Technique continues to do.

In Saylor’s view, meaning he could be shopping for Bitcoin at $13 million, the value goal he’s established for the asset over the subsequent 21 years as he expects it to take up a bigger share of complete world capital.

The case in opposition to Technique’s Bitcoin reserve

Technique’s persistent Bitcoin acquisitions by way of the sale of debt has confronted scrutiny by analysts and media within the house. In November 2024, Robinhood-backed Sherwood Media outlined the “math drawback,” with MSTR being price 3x the quantity of BTC that it holds and the potential of compelled liquidations in a drawdown.

This premium, referred to as the agency’s mNAV or its a number of to its internet asset worth, has traditionally traded at a robust premium for Technique. Nevertheless, as Bitcoin fell in 2026, Technique’s mNAV—which had reached as excessive as 3.89x in November 2024—dropped beneath 1, that means the corporate’s market cap is now valued beneath the worth of its Bitcoin holdings.

The falling mNAV corresponded with round a 70% drop within the MSTR share worth over the six-month interval from August 2025 to February 2026, with the corporate reporting a lack of $12.4 billion in This fall 2025.

Skeptics have typically famous that if the MSTR share worth falls sufficient, Technique might be compelled to promote Bitcoin to repay billions in convertible notes, “successfully reversing its ‘perpetual movement machine’…which might additional lower Bitcoin’s worth,” in accordance with Sherwood Media.

However as shares fell, alongside BTC in February 2026, Saylor known as considerations in regards to the agency’s skill to pay its money owed and dividends “unfounded,” noting that his agency would simply “refinance the debt” ought to the value of BTC fall far sufficient.

To assist keep away from conditions the place the agency could also be compelled into promoting BTC, it established a money reserve in December 2025, kickstarting it with $1.44 billion in funds. It later added to that pile, finally securing greater than 2.5 years price of debt and dividends as of February 2026, in accordance with Saylor—who claims that the corporate can cowl its $6 billion debt if BTC falls as little as $8,000.

The way forward for Technique

Technique has continued its constant Bitcoin purchases.

As of February 2026, it holds 717,131 Bitcoin, price almost $48 billion—making it the most important Bitcoin treasury amongst publicly traded corporations. In accordance with knowledge from SaylorTracker, Technique is down greater than $6.5 billion on its purchases lifetime.

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Saylor’s ambitions for Technique are even grander than including main Bitcoin reserves to the corporate’s stability sheet. In October 2024, he outlined his imaginative and prescient for Technique to evolve right into a “Bitcoin financial institution” with a trillion-dollar valuation, creating capital market devices tied to Bitcoin that may be supplied to buyers.

Along with including to its personal holdings, Saylor has pitched Technique’s Bitcoin playbook to different main publicly traded corporations. In December 2024, he informed the Microsoft board they may stand to create $5 trillion in worth by adopting Bitcoin. They voted in opposition to including it to their stability sheet.

Editor’s word: This story was initially revealed on January 8, 2025 and final up to date with new particulars on February 20, 2026.