The Bitcoin accumulation strategy adopted by Strategy represents a true revolution in the way of financing large-scale exposures to Bitcoin. Thanks to a multi-level capital structure engineered to maximize fundraising and shareholder protection, Strategy has managed to transform fiat capital into a vast portfolio of Bitcoin, without compromises.
Bitcoin: what is the capital structure of Strategy?
A capital structure is the set of financial means with which a company supports its operations and strategic plans. In the case of Strategy, this structure is not a simple mix of debt and equity; it is specifically designed to allow an efficient transformation of fiat capital into exposure to Bitcoin.
This multilayered system combines debt instruments and preferred shares with common shares, creating an orderly pyramid for repayment priority and risk profile. Each of these instruments meets specific needs of investors interested in yield, risk, and correlation with BTC to a different extent.
The instruments of capital structure: from debt to common shares
Strategy uses five main financial instruments, arranged in order of priority and risk:
Convertible bonds: senior debt with conversion option
At the base of debt capital are obbligazioni convertibili, unsecured debt instruments but with high priority in case of liquidation. These bonds offer a relatively low-risk profile for institutional investors who seek protection with a potential for appreciation through conversion into shares.
This type has been fundamental for the collection of billions, taking advantage of low rate contexts to accumulate Bitcoin without issuing shares, thus maintaining control and reducing dilution.
Preferred shares Strife ($STRF): investment-grade quality and predictable income
Strife is a perpetual preferred stock with an investor profile oriented towards stability. It offers a cumulative dividend of 10% paid in cash and enjoys a liquidation preference at 100 dollars.
It does not foresee conversion into ordinary shares nor direct exposure to Bitcoin, making it a product similar to a high-quality bond. This structure offers a fixed yield to investors seeking predictable income, with low volatility and an intermediate risk profile.
Preferred shares Strike ($STRK): combination of yield and participation in Bitcoin
Strike represents a convertible preferred security that offers a hybrid between a fixed income investment and potential exposure to the ascending value of Bitcoin. With a cumulative dividend of 8%, Strike can be converted into class A common shares at a strike price of 1,000 dollars.
This feature attracts investors who are looking for a stable cash flow but also want to benefit from the increase in value of Bitcoin during bull cycles, combining stability and growth potential.
Preferred shares Stride ($STRD): higher yield and greater risk
Stride is the most junior preferred stock: a perpetual, non-cumulative investment with dividends generally above 10%, but without protection on payments or voting rights. Despite having a higher risk, it offers yield-seeking investors the opportunity to obtain greater rewards by positioning themselves lower on the repayment scale.
Furthermore, Stride acts as a subordinated “buffer” that enhances the creditworthiness of the more senior instruments, allowing Strategy to raise capital more efficiently without affecting the more protected levels.
Ordinary shares ($MSTR): maximum exposure to Bitcoin
The base of the capital structure consists of the **azioni ordinarie ($MSTR)** of Strategy, the most volatile level but with the maximum growth potential. The azioni ordinarie do not provide dividends or repayment priority, but they guarantee voting rights and long-term ownership.
This range is ideal for investors highly convinced by Strategy’s long-term Bitcoin strategy, willing to endure volatility and the absence of fixed returns to fully participate in the appreciation of Bitcoin’s value.
The overall picture: a model that challenges the global bond market
The CEO Michael Saylor is aiming not only at the accumulation of Bitcoin but at the creation of an entire fixed income market adjacent to Bitcoin, capable of absorbing capital from institutional investors and speculators with various risk profiles.
Through instruments like $STRF, $STRK, and $STRD, Strategy creates financial vehicles that position themselves as an alternative to the 130 trillion dollar global bond market. Each instrument acts like a synthetic bond but with an innovative secret: the capital raised is transformed into Bitcoin, which remains in the corporate portfolio without being sold.
As Dylan LeClair of Metaplanet points out, this approach aims to scale the demand for capital connected to Bitcoin throughout the fixed income chain, offering investors the possibility to take on diversified risks while maintaining an indirect or direct exposure to Bitcoin.
Why the capital structure of Strategy is a model to follow
This financial architecture goes beyond simple capital management: it is an operating system for public companies that intend to build a “native Bitcoin” balance sheet while maintaining financial discipline and control.
The strengths of the structure are:
Customization for investor classes: from the safest debt to high-yield instruments, each level meets specific risk and return needs.
Preservation of the position in Bitcoin: the raised capital comes in, but Bitcoin remains on an increasing scale without compromises.
Diversification without dominances: no instrument prevails over another, allowing for flexibility and stability.
Intact stock control: most of the securities are non-voting, thus preserving the power of long-term shareholders.
For many companies interested in transforming their balance sheets into Bitcoin accumulation tools, Strategy provides a clear paradigm.
Towards the Future: a Monetary Change Underway
The capital structure of Strategy is not just a financial growth tool: it is the foundation of a profound monetary change. Saylor and his team are building a financial infrastructure aligned with the emerging future of digital currencies, offering flexible liquidity without giving up exposure to Bitcoin.
Companies and investors are today called to reflect: adopting innovative financial models like this can change the rules of the game in the long term.
Diving deeper into the understanding of similar strategies can allow investors and entrepreneurs to actively participate in this transformation, making capital an efficient ally in the era of Bitcoin.
