DailySun
Is Strategy progressively reshaping the relationship between public companies and capital markets — and could its ambitious $21 billion initiative pave the way for Bitcoin-aligned financial approaches?
Small fish, big splash
Strategy (previously MicroStrategy) is altering its role in U.S. capital markets in surprising ways. While mainly seen as an enterprise software firm, it has transformed into a notable Bitcoin (BTC) proxy and a key player in equity financing throughout 2024, even though it represents only a small fraction of the total market capitalization.
As of March 25, Strategy has a market cap of $87.64 billion, ranking 109th among U.S. companies and 211th globally. While it lags behind the largest public firms, its activities in equity raising for 2024 are remarkably significant.
According to data from Bloomberg Intelligence, shared by Matthew Sigel, Head of Digital Assets Research at VanEck, Strategy, which constitutes just 0.07% of the U.S. equity market by value, accounted for an impressive 16% of all equity raised or announced in 2024.
A large fraction of this capital was generated through two notable offerings: a $2 billion convertible note issuance completed in November 2024, and a broader fundraising effort announced in October 2024, aimed at raising $21 billion over three years.
By late December, $561 million had been secured, with a significant portion allocated for Bitcoin acquisitions — a tactic the firm has increasingly adopted over recent years.
In the software sector, these transactions made up over 70% of the $39.5 billion in new equity raised in 2024. This sum places software ahead of other sectors for additional offerings, with biotechnology at $30.1 billion, oil & gas at $26.46 billion, REITs at $22.44 billion, and aerospace and defense at $21.13 billion following.
Interestingly, only biotechnology and REITs have consistently been in the top five sectors in recent years. Strategy’s massive engagement in the software industry indicates an unusually concentrated contribution.
Few corporations of Strategy’s size have aggressively pursued equity markets in 2024, and even fewer have done so with such a focused approach — utilizing corporate balance sheet expansion to build Bitcoin reserves.
In this respect, the company’s financial maneuvers are more about major asset allocation than traditional software growth. Let’s explore the behind-the-scenes developments.
Strategy doubles down on its BTC thesis
In early 2025, Strategy continued its Bitcoin buying strategy, acquiring 6,911 BTC for approximately $584.1 million at an average price of $84,529 per coin, solidifying its position as the largest public company by BTC holdings.
By March 25, the firm had accumulated a total of 506,137 BTC at a rough cost of $33.7 billion, with an average cost basis of $66,608. With Bitcoin’s current market price nearing $87,000, Strategy’s BTC holdings are now valued at over $44 billion, reflecting an unrealized gain of around $10.3 billion, or approximately $20,392 per BTC.
Year-to-date, the company has realized a 7.7% yield on BTC. This latest purchase came shortly after Strategy reaffirmed its intent to raise capital through Class A strike preferred stock.
While the filing suggests that funds may go towards “general corporate purposes,” historical trends indicate that a considerable share will likely be allocated to crypto asset accumulation.
Strategy’s approach markedly contrasts with other corporate Bitcoin holders. For instance, Tesla owns roughly 11,500 BTC, while Block (formerly Square) holds just over 8,000 BTC. Both companies made their purchases years ago and have not significantly altered their positions.
In contrast, Strategy has consistently executed multiple acquisitions nearly every quarter since 2020, remaining the only publicly traded company with a defined strategy for Bitcoin as a primary treasury reserve asset.
The stock of $MSTR consistently mirrors Bitcoin price trends. On March 24, during a robust rebound in U.S. equities — with the Nasdaq climbing by 2.27% — Strategy shares jumped over 10%, closing at $335.72, leading to a one-day market cap surge of approximately $8 billion, even without major business updates or earnings reports.
This correlation is not coincidental. Historically, MSTR has exhibited a beta of over 2.0 in relation to Bitcoin, suggesting it amplifies BTC price movements in both directions.
However, this strategy carries inherent risks. The company has over $4 billion in long-term debt, much of which is tied to convertible notes maturing between 2028 and 2032.
In the event of prolonged Bitcoin downturns or tightening capital markets, Strategy may face challenges in refinancing or raising new capital.
As indicated in its latest filings, the firm holds minimal cash reserves relative to its debt obligations, highlighting its dependence on Bitcoin price appreciation to maintain balance sheet stability.
STRK and financial engineering
In early 2025, Strategy introduced a new financial instrument known as STRK, short for Series A Perpetual Strike Preferred Stock.
Distinct from standard stock such as MSTR or typical bonds, STRK occupies a unique position, designed to generate capital without exerting immediate pressure on existing shareholders.
STRK was unveiled in January 2025 as part of Strategy’s larger goal to raise $42 billion over three years to bolster its ongoing Bitcoin initiatives. Initially, the company offered 7.3 million STRK shares at $80 each, raising approximately $563 million, exceeding its initial expectations.
So, what advantages does STRK offer to investors? Firstly, it provides an 8% annual dividend, which Strategy can choose to pay in either cash or stock. This reliable income stream has rendered STRK appealing to investors looking for a stable way to gain Bitcoin exposure, free from the volatile price swings typical of common stocks like MSTR or Bitcoin itself.
A conversion feature is also included: If MSTR’s stock price reaches $1,000, each STRK share can be exchanged for 0.1 shares of MSTR. However, with MSTR trading around $335 as of March 25, this conversion opportunity is not presently applicable.
Since its launch in early February, STRK has performed favorably. The current market value of approximately $86.6 provides investors with close to a 7% effective yield, which is impressive by most standards.
In comparison to ordinary shares, STRK offers Strategy several advantages. It enables capital raising without the immediate issuance of additional MSTR stock, thus avoiding direct dilution of existing shareholders. Furthermore, it attracts a different investor demographic—those seeking income and stability rather than solely wagering on Bitcoin’s long-term growth potential.
Nevertheless, STRK is not without risks. Its value is intrinsically linked to Strategy’s overall performance, which closely follows Bitcoin. Should Bitcoin prices decline or if the company feels pressure to meet its dividend commitments, STRK could lose some of its appeal.
What this means for public markets
Strategy’s strides in 2024 illustrate a striking example of how capital markets are adapting to the integration of digital assets — not by establishing new asset classes, but by redefining existing ones.
The company has emerged as a major source of equity issuance this year while only accounting for 0.07% of total U.S. equities, indicating a shifting investor interest in asset strategies offered through publicly traded entities.
In doing so, Strategy has charted a course for public firms to act as intermediaries between traditional capital and decentralized assets. This transformation reflects the evolution of the relationship between regulated financial instruments and crypto-native strategies.
The dynamics of the future will depend less on Strategy itself and more on broader factors: cost of capital, Bitcoin’s role in institutional portfolios, and the views of regulators and investors on these hybrid models.
If funding remains accessible and crypto continues to be sought as an alternative store of value, we may see similar frameworks emerge. Conversely, if circumstances shift, this model could remain an exception.
Regardless, Strategy has propelled public markets into uncharted territory, where capital allocation, balance sheet strategies, and digital asset exposure now converge on a common axis.
