He turned a software slump into a Bitcoin treasury.
Radical, Rewarding, Risky
Michael Saylor founded MicroStrategy in 1989 and built it into a public software firm. After a rapid rise during the dotcom boom, a combination of accounting missteps and a market correction caused his net worth to fall by nearly six billion dollars in a single day. Two decades later, he shifted the company into a new direction: using Bitcoin as a corporate reserve asset.
- Total BTC held: 580,955 coins, acquired for 40.68 billion dollars at an average cost of around 70,023 dollars (as of June 1, 2025)
- Current BTC price: Around 106,000 dollars, placing the position near 20 billion dollars in unrealized gains
- Funding model: Strategy raises capital through zero coupon convertible bonds, high yield preferred shares, open market equity sales, and limited use of operational revenue
- Terms advantage: Stock volatility allows the firm to secure financing with little or no interest, structured with embedded conversion options tied to future share performance
- Bitcoin custody: Coins are acquired through institutional exchanges and stored in cold multisignature wallets, not held as derivatives or custodial IOUs
Saylor’s model is a capital markets loop. By raising funds with favorable terms, buying more Bitcoin, and improving the asset base, the company reduces future financing costs. That cycle has scaled their BTC position but depends entirely on asset strength and investor trust.
Leverage Without Margin
Strategy’s model works like a spot Bitcoin ETF with built-in credit. Bondholders receive yield and equity exposure, while the firm avoids dilution when conditions are favorable. Preferred shares now pay yields up to 11.75 percent and are backed by real BTC reserves.
It Only Works If BTC Holds
If Bitcoin enters a prolonged decline, the entire model weakens. Future financing becomes more expensive, equity dilution increases, and the flywheel breaks. While the position is unleveraged in traditional terms, it behaves like a leveraged trade through the structure of its funding. The entire system depends on Bitcoin remaining strong enough to back its asset and debt profile.
Highly concentrated plays can work if the asset performs. To understand the full shift in financial rails, start here: