MicroStrategy (Strategy for short) has undergone a fundamental transformation in recent years, evolving from a traditional software provider to an active pioneer in the field of digital assets. The company’s strategy is based on consistent capital allocation in Bitcoin. It is no longer just about holding Bitcoin as a reserve, but about systematically building a new type of financial institution based entirely on the Bitcoin standard.
The central idea is to develop a comprehensive ecosystem of financial instruments that are based on Bitcoin but also meet institutional standards. The aim is to achieve both long-term value creation for shareholders and the creation of an alternative financial system.
Engagement and Communication as a Corporate Strategy
A key element of MicroStrategy’s strategy is direct communication with investors and the public. Instead of limiting itself to traditional investor relations work, the company focuses on maximum transparency and intensive public discussion of its financial strategy.
This is evident, among other things, in the way investor presentations are conducted: detailed presentations with hundreds of slides, open Q&A sessions, and strategic guidelines that not only show the current state of affairs but also outline a vision for the years ahead. This approach strengthens confidence in the company’s management and at the same time serves to educate investors about finance.
Raising Capital through ATM Programs and their Impact
A key tool for raising capital is the ATM (“at-the-market”) program, in which new shares are sold directly on the market to generate liquidity. In a traditional corporate context, such programs are often viewed critically as they can indicate short-term liquidity bottlenecks.
However, Strategy uses ATMs differently: the proceeds are not used to cover operating losses, but exclusively for Bitcoin accumulation. This adds a liquid asset to the balance sheet that can generate value in the long term. The impact on the share price is controversial, especially with regard to short-term volatility – but from a long-term perspective, this is considered strategically sound.
Related article: Kevin O’Leary is optimistic about cryptocurrencies but questions MicroStrategy’s business model
The New Financial Architecture: From Convertible Bonds to STRK and STRF
A particularly innovative aspect is the development of a new product family within the capital structure. In addition to traditional shares and convertible bonds, new instruments have been introduced:
STRK: A hybrid product linked to shares with a fixed interest rate. It offers investors both a stable distribution and the opportunity to benefit from rising share prices.
STRF: A fixed-income financial instrument not linked to shares, which focuses on yield and security. This product is aimed at institutional investors with a conservative risk profile, such as insurance companies or pension funds.
These instruments diversify the company’s capital structure and tailor it to the needs of different investor groups. At the same time, the aim is to build an extremely creditworthy profile through overcollateralized structures.
Strategy Bitcoin Buy (Chart: Bitcoin Treasuries by BitBo)
Overcollateralization and Creditworthiness as a Strategic Feature
All new financial products are heavily overcollateralized by Bitcoin on the company’s balance sheet. This significantly reduces the default risk and allows the company to position itself as an institutionally suitable issuer of investment products. The goal is to be officially rated as investment grade by rating agencies such as Moody’s or Fitch.
Such a rating would facilitate access to large capital pools (e.g., pension funds) and increase the attractiveness of the instruments. Transparency regarding the Bitcoin collateralization ratio will become a key indicator for investors and rating agencies.
Related article: “2025 is the first year of the institutional era of digital capital,” says Michael Saylor of MicroStrategy
The 2121 Plan: Doubling the Strategy
The company originally planned to raise USD 21 billion over three years through equity and debt instruments (“21/21 plan”). Due to high demand and strategic successes, this plan has now been doubled: the target is now USD 42 billion on both sides.
A large portion of this capital is to be raised through the expansion of STRK and STRF products. This underscores the strategic importance of these financial products – not only for Bitcoin accumulation, but also as a long-term source of revenue and stability anchor in corporate finance.
The Role of Institutional Investors and the Path to Mainstream Adoption
The new financial instruments now also enable institutional investors to invest indirectly in Bitcoin without having to overcome regulatory hurdles such as self-custody or volatility risks. Products with fixed interest rates and predictable maturities allow integration into traditional portfolios and investment plans.
This development shows how structuring and financial innovation are opening up the Bitcoin market to new target groups – especially those seeking stability and long-term planning security.
Related article: Michael Saylor’s vision of MicroStrategy and Bitcoin – An in-depth analysis
Between Financialization and Sovereignty
The strategy also raises ideological questions: Purist Bitcoin supporters see the increasing financialization as a dilution of the original idea of decentralization and individual sovereignty. However, in a financial system that remains dollar-centric, the bridge between the fiat and Bitcoin worlds represents a necessary transitional solution.
By using traditional financial instruments, Bitcoin is integrated into existing structures without sacrificing its fundamental characteristics. Companies such as Strategy are building precisely this bridge – between the old and new financial worlds.
Bitcoin for Everyone – in Various Forms
The underlying idea behind this strategy is to make Bitcoin accessible to everyone – but in the form that suits them best. For private investors, this could be self-custody; for companies, a balance sheet item; for governments, a reserve currency; and for institutional investors, a regulated financial instrument.
Through the development of diverse products, Bitcoin is being carried into new social and economic areas. This is gradually fulfilling the promise of providing a universal form of digital property and value storage for everyone.
Author
Ed Prinz serves as Chairman of https://dltaustria.com, the most renowned non-profit organization in Austria specializing in blockchain technology. DLT Austria is actively involved in educating and promoting the value and applications of distributed ledger technology. This is done through educational events, meetups, workshops, and open discussion forums, all in voluntary collaboration with leading industry players.
Disclaimer
This is my personal opinion and not financial advice.
For this reason, I cannot guarantee the accuracy of the information in this article. If you are unsure, you should consult a qualified advisor whom you trust. This article does not make any guarantees or promises regarding profits. All statements in this and other articles are my personal opinion.