In a bold move reshaping corporate finance, MicroStrategy—now rebranded as Strategy—has turned Bitcoin into its primary treasury asset, delivering staggering earnings outperformance. With 628,791 BTC valued at $67.3 billion, the company’s strategy offers a blueprint for the digital age.
How MicroStrategy’s Bitcoin Treasury Strategy Works
Strategy’s approach hinges on three pillars:
- Bitcoin as core reserve: 628,791 BTC held, with a 25% YTD increase in Bitcoin per Share (BPS).
- Innovative capital raising: $10B+ raised via ATM equity and preferred stock IPOs like STRC.
- mNAV-driven acquisition: Bitcoin purchases accelerate when enterprise value exceeds 4.0x mNAV.
Why This Strategy Delivers Earnings Outperformance
Bitcoin’s price surge to $107,752 (from a $73,277 average cost) generated:
| Metric | Q2 2025 Result |
|---|---|
| Unrealized gain | $14.0B |
| Operating income | $14.03B |
| Diluted EPS | $32.60 |
Digital Assets Reshaping Corporate Finance
Strategy proves Bitcoin can be both a store of value and growth engine, challenging traditional treasury norms. Their model shows:
- Operating income from unrealized BTC gains, not just dividends/interest
- Preferred stock (e.g., STRC) lets investors participate without direct BTC exposure
- Self-funding loop minimizes dilution while scaling Bitcoin holdings
Investment Outlook: Balancing Opportunity and Risk
While Bitcoin’s macroeconomic tailwinds favor Strategy, investors should note:
- Upside: $20B BTC gain target if Bitcoin hits $150K by December 2025
- Risks: BTC volatility, regulatory shifts, market corrections
- Strategy: Balance Strategy equity/preferred stock with traditional assets
FAQs: MicroStrategy’s Bitcoin Treasury Strategy
Q: How much Bitcoin does MicroStrategy hold?
A: 628,791 BTC worth $67.3B as of July 2025.
Q: What is Bitcoin per Share (BPS)?
A: A metric showing BTC holdings per outstanding share, up 25% YTD.
Q: How does STRC preferred stock work?
A: It offers variable-rate dividends adjusted based on trading price, providing liquidity and stabilized returns.
Q: What happens if Bitcoin’s price falls?
A: Strategy’s capital structure minimizes dilution risks, with equity issuance reserved for debt servicing below 2.5x mNAV.
