Michael Saylor, founder and executive chairman of Strategy (formerly MicroStrategy), has been a prominent advocate for Bitcoin, transforming his company into the largest corporate holder of the cryptocurrency. Since 2020, Strategy has consistently invested in Bitcoin, utilizing various financial instruments to fund these acquisitions. As of March 2025, the company holds approximately 386,700 bitcoins, valued at around $37 billion, accounting for over 2% of all bitcoins in existence.
In its latest move, Strategy introduced the Series A Perpetual Strife Preferred Stock to raise funds for additional Bitcoin purchases. This instrument offers a fixed annual dividend of 10%, increasing by 1% per year if payments are deferred, capped at 18%. The unique structure and name "Strife" have raised questions among financial analysts regarding the company's heavy reliance on Bitcoin and the sustainability of such financial strategies.
Financial Times
While Strategy's bold approach has significantly boosted its market valuation, it also exposes the company to the inherent volatility of the cryptocurrency market. Investors are advised to consider these factors carefully when evaluating the company's stock and the potential risks associated with its Bitcoin-centric strategy.
