What Is Strategy (MSTR)? The Bitcoin Treasury Company

At present, Technique is among the most essential establishments in cryptocurrency, nevertheless it didn’t begin out that means. Initially known as MicroStrategy, the corporate co-founded by Michael Saylor—one of the vital influential figures on the earth of Bitcoin—first made its mark in software program.

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

Right here’s the whole lot else it’s essential 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 determination 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 prime 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 companies.”

After a short spike in its share value in 2000, MSTR traded in a decent vary for the subsequent twenty years, solely starting to make a significant 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 constructive 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 major treasury reserve asset. Involved concerning the devaluation of the US greenback and fiat forex as a consequence of inflation, Saylor spearheaded the corporate’s first purchase 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 gorgeous 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 lift funds to purchase extra Bitcoin. In different phrases, Technique makes use of short-term debt raises by way of convertible notes that enable buyers to finally 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 in the end been adopted by different publicly traded firms 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 difficulty 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 lift as much as $42 billion with a view to add extra of the main cryptocurrency asset to its stability sheet.

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

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

All year long, the agency would launch further most popular inventory choices to assist fund its Bitcoin purchases, granting several types 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 in the end been adopted by different publicly traded firms 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 difficulty extra debt to develop extra actual property.”

As Technique has turn out to be ever extra carefully 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 page.

Michael Saylor, Bitcoin convert

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

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

Since then, Saylor has done a complete 180°, claiming Bitcoin is the perfect long-term asset to carry whereas committing to “shopping for the highest without end,” referring to constantly buying the asset at its peak costs—which Technique continues to do.

In Saylor’s view, which means he may be shopping for Bitcoin at $13 million, the worth 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 area. In November 2024, Robinhood-backed Sherwood Media outlined the “math drawback,” with MSTR being worth 3x the quantity of BTC that it holds and the potential of compelled liquidations in a drawdown.

This premium, often known 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, which 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 value over the six-month interval from August 2025 to February 2026, with the corporate reporting a loss of $12.4 billion in This fall 2025.

Skeptics have usually famous that if the MSTR share value falls sufficient, Technique could possibly be forced to sell Bitcoin to repay billions in convertible notes, “successfully reversing its ‘perpetual movement machine’…which might additional lower Bitcoin’s value,” in line with Sherwood Media.

However as shares fell, alongside BTC in February 2026, Saylor known as issues concerning the agency’s means to pay its money owed and dividends “unfounded,” noting that his agency would simply “refinance the debt” ought to the worth 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, in the end securing greater than 2.5 years value of debt and dividends as of February 2026, in line 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 consistent Bitcoin purchases.

As of February 2026, it holds 717,131 Bitcoin, value practically $48 billion—making it the biggest Bitcoin treasury among publicly traded companies. Based on knowledge from SaylorTracker, Technique is down greater than $6.5 billion on its purchases lifetime.

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 vision 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 provided to buyers.

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

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