GUIDE: What is Strategy?

Strategy in a nutshell

Strategy is a listed company that combines a software business with a bitcoin-focused treasury. It is listed on Nasdaq under the symbol MSTR. When you buy that stock, you buy a stake in the company: you do not receive bitcoins in a wallet nor a direct right to withdraw a portion of its reserves.

The term "bitcoin treasury company" describes its use of BTC as a reserve asset. Instead of holding only cash and other financial instruments, the company allocates a significant portion of its capital to bitcoin. The result depends both on the BTC market and Strategy's financial decisions.

From MicroStrategy to Strategy

MicroStrategy was founded in 1989 and went public in 1998. Michael Saylor is its co-founder and the figure most associated with its transformation toward bitcoin. Its original business helped companies convert large datasets into reports and analytical tools for decision-making.

On February 5, 2025, it announced it was transitioning to the Strategy brand. The change included a logo with a stylized B to express its focus on bitcoin. The ticker symbol MSTR remained. The new name does not mean a cryptocurrency called Strategy was born: it remains a company that issues securities and develops software.

The first bitcoin purchase: August 2020

On August 11, 2020, MicroStrategy announced the purchase of 21,454 BTC for $250 million, including costs and fees. It was a turning point: a listed software company adopted bitcoin as its primary treasury reserve asset.

Saylor argued that bitcoin's limited supply could protect capital value in the long term against the loss of purchasing power of money. That is the company's thesis, not an economic guarantee. Bitcoin can suffer prolonged drops, and a limited supply does not eliminate uncertainty regarding demand or price.

What role do Michael Saylor and Phong Le play?

Michael Saylor stepped down as CEO in August 2022 and became Executive Chairman. In that role, he has focused especially on the bitcoin strategy and public advocacy. His notoriety should not be confused with currently holding the position of CEO.

Phong Le assumed the role of President and CEO on August 8, 2022. Distinguishing both roles helps in understanding the company's direction: Saylor is its primary spokesperson for bitcoin, while Le serves as CEO. The Strategy profile in our database gathers company information and its stock price.

How does it finance BTC purchases?

Strategy has used cash, income from its operations, and financing obtained in the markets. A major tool is issuing common stock: new resources enter, but the number of shares among which ownership is divided also increases.

It has also issued convertible debt and preferred stock. Convertible debt can be converted into shares under the contract terms; meanwhile, it may involve maturities and payment obligations. Preferred shares have their own rights and conditions, different from MSTR, and may require dividends. Not all these instruments offer the same exposure or the same risk.

That is why it matters to look at more than the total number of bitcoins. One must consider debt, available cash, preferred share rights, and the share count. Raising capital allows for increasing reserves, but it does not automatically turn every issuance into an improvement for all shareholders.

MSTR is not bitcoin nor a bitcoin ETF

Bitcoin purchased directly is held in one's own wallet or through a custodian. A spot ETF seeks to track the price of bitcoin through a fund structure, subject to costs and conditions. MSTR, by contrast, represents equity in a company with management, software, debt, and financing decisions.

The price of MSTR can move much more than BTC and does not necessarily follow it in a constant proportion. Expectations about the company, the cost of raising capital, and the market valuation of its strategy change. Its stock market trading hours also differ from the bitcoin market, which operates every day.

Premium, discount, and bitcoin per share

Investors often compare Strategy's market value with the value of its reserves. A premium means the market pays more than a reference asset value; a discount means it pays less. The comparison requires specifying what is included: debt, cash, preferred shares, and the software business can significantly change the calculation.

Bitcoin per share provides another perspective. If reserves increase but the number of shares grows even more, that indicator can worsen. Strategy uses metrics like BTC Yield to describe changes in the relationship between BTC and certain diluted shares. It is not the return on your investment nor interest paid in bitcoin, and it must be read alongside their methodology.

The main risks

The first risk is the price of bitcoin: a drop reduces the value of reserves and can affect market confidence. The second is financing. If issuing new shares or debt becomes less attractive, the company may have less flexibility to buy BTC or meet its commitments.

There are also dilution, maturities, preferred dividends, custody, regulatory changes, and management risk. The structure does not imply that any bitcoin drop will cause an automatic liquidation, but it also does not guarantee that it will never be necessary to sell assets. Obligations and liquidity must be evaluated with current documents, not with a slogan.

Furthermore, a market premium can shrink even if bitcoin rises. Buying MSTR because a BTC rise is expected does not eliminate the risk of paying too much for the exposure. The stock can lose a substantial part of its value, and losses are not limited by the amount of bitcoin the company initially purchased.

Software remains part of the company

Strategy continues to offer business intelligence and analytics tools, including features related to artificial intelligence. Its customers use the software to query data and generate useful insights for their operations. The existence of this business distinguishes the company from a vehicle that solely holds bitcoin.

However, it is not wise to assume that software revenue alone covers all treasury financing. To evaluate that relationship, one must consult the financial statements, cash flow, and company obligations. A well-known tech history is no substitute for an analysis of the balance sheet.

What to consult before forming an opinion

Start with Strategy's official communications and financial reports. Check the date of the BTC reserves, the number of shares, debt, cash, and the conditions of the various securities. We avoid presenting a reserve figure as permanent because it can change with purchases, sales, and new issuances.

Our stock profile allows you to consult Strategy alongside other companies in the sector. This guide is editorial information, not a buy recommendation. The essential conclusion is simple: MSTR offers corporate exposure to bitcoin, with additional opportunities and risks compared to holding BTC directly. Understanding that difference is more useful than treating the stock as an exact copy of the bitcoin price.