Crypto
Strategy (MicroStrategy) and Michael Saylor: The Bitcoin Treasury Strategy Explained
Strategy (formerly MicroStrategy, ticker MSTR) is a US software company that became known for buying large amounts of bitcoin and holding it as its main treasury asset. Michael Saylor, the company's co-founder and executive chairman, has been its public voice. Strategy raises money from investors, through shares, convertible debt and preferred shares, to buy bitcoin. Its share price can therefore move more than bitcoin, in both directions.
What is Strategy?
Strategy was founded in 1989 as MicroStrategy and sells business analytics software. In 2025 it changed its name to Strategy. Its website is strategy.com. Today it is best known for its bitcoin holdings.
Who is Michael Saylor?
Michael Saylor co-founded the company and serves as its executive chairman. He is one of the best-known public supporters of Bitcoin and speaks about it often. His views are his own and are not neutral research. Treat them as one opinion among many.
How did the bitcoin strategy start?
In August 2020 the company announced it had bought bitcoin as a way to hold its cash reserves, instead of keeping all of it in cash. It has continued to buy bitcoin since, using money raised from investors as well as cash from its software business.
How does Strategy pay for bitcoin?
- Selling new shares to investors, which can dilute existing shareholders.
- Convertible notes: debt that can be turned into shares later.
- Preferred shares: a separate class of shares that pays a set return to investors.
- Cash from operations, which is small compared with its bitcoin purchases.
How much bitcoin does Strategy hold?
The amount changes often as the company buys, and it should always be checked at the source. Use the company's own website and its regulatory filings with the US SEC, which you can search on SEC EDGAR. We do not quote a figure here because it would be out of date quickly.
Is buying Strategy stock the same as buying bitcoin?
| Strategy (MSTR) shares | Bitcoin directly | Bitcoin ETF | |
|---|---|---|---|
| What you own | Shares in a company that holds bitcoin and also runs a software business | The coin itself | Shares in a fund that holds bitcoin |
| Extra risks | Company debt, dilution, management decisions, stock market swings | Custody and keys | Fees and a custodian |
| Price move | Can move more than bitcoin, up or down | Follows bitcoin | Tracks bitcoin closely |
| How you buy | A normal brokerage account | An exchange and a wallet | A normal brokerage account |
What are the risks?
- Bitcoin price risk. A big fall in bitcoin affects the company's value.
- Debt and dilution. Raising money by selling shares or borrowing has costs.
- Premium to the bitcoin it holds. The stock can trade above or below the value of its bitcoin.
- One strategy. The company is concentrated in a single asset.
- Accounting and tax. Holding bitcoin affects reported results.
What questions should you ask before deciding?
- What does the company own, and what does it owe?
- How is it paying for new purchases, and who bears the cost?
- Is the share price above or below the value of its bitcoin?
- What happens if bitcoin falls a lot for a long time?
- Would a simpler option, such as an ETF, do the same job?
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Image credit: Header photo: Michael Saylor at Bitcoin 2025 (May 2025) by Gage Skidmore, CC BY-SA 2.0, via Wikimedia Commons, cropped and resized. This header image is shared under the same CC BY-SA 2.0 licence.
Frequently asked questions
What is Strategy, formerly MicroStrategy?
A US software company, ticker MSTR, now best known for holding bitcoin as its main treasury asset.
Who is Michael Saylor?
The company's co-founder and executive chairman, and a well-known public supporter of Bitcoin.
How does Strategy buy bitcoin?
Mostly with money raised from investors through new shares, convertible notes and preferred shares, as well as cash from its business.
Is buying MSTR the same as buying bitcoin?
No. It is a company with debt, dilution and a software business, and its stock can move more than bitcoin.
Is this financial advice?
No. This is education only and not an endorsement of any company.
Namya Aankur Gupta is the founder and CEO of The AI Investor, an education brand that teaches practical AI, investing and crypto skills. Featured by LinkedIn News India as a voice to follow in India. Her content is educational and is not financial advice.