As a long-term observer of the intersection of crypto assets and traditional finance, I have been researching the business model of the 'Bitcoin Treasury Company'.
In the years of fluctuating Bitcoin cycles, there is a special type of company that stands out in this global monetary experiment by leveraging a unique business model.
Among them, the most representative is certainly MicroStrategy.
This company does not mine, issue coins, or operate exchanges, yet it has played a capital market ace by 'hoarding BTC': not only indirectly amplifying the price returns of BTC but also achieving a counterattack against traditional financial logic.
How does it achieve this? Here are two key strategies:
1. Sell stocks for cash → Buy Bitcoin
When the market is willing to buy its stock at a high price, the company issues more shares, and after getting the money, buys BTC. Although the shares are diluted, the amount of Bitcoin purchased increases, leading to a higher average BTC per share.
For example: originally, 1 share had 0.001 BTC behind it, and after financing, it became 0.0012 BTC, which is called 'enhancement'.
The premise for this approach is: the company's market value must exceed the actual value of the Bitcoin it holds, also known as mNAV > 1.
2. Borrow money to buy Bitcoin (with leverage)
If the company can borrow money at an 8% interest rate, and it judges that the annual increase in BTC will long-term be 20%, then it can borrow money to buy BTC and earn the 'interest spread' in between.
This is exactly what MicroStrategy does; its leverage is not aggressive, but through steady operations, it has built a 'Bitcoin investment model that is more profitable than BTC'.
What the BTC Treasury Company pursues is not profit maximization, but the continuous increase of 'BPS (Bitcoin per Share)'.
The calculation method for this indicator is very simple:
BPS = Total number of BTC held by the company ÷ Total diluted shares
For MicroStrategy, as long as the BTC holdings per share are increasing, it is a continuous injection of value for shareholders. Bitcoin is the main business; everything else is a means.
The essence of the MicroStrategy model is not speculation, but to extract the growth potential of BTC using the valuation system of financial markets, then redistribute this value to shareholders through a clever configuration of equity and debt.
This may be the 'bridge' model for a part of traditional financial capital to shift towards the crypto market in the future:
BTC is an asset; the treasury company is the structure; value transfer is the channel.
Ordinary people may find it difficult to directly participate in such capital structure games, but understanding the logic behind it is the first step towards the next crypto cycle.
