Is this approach subtly transforming how publicly traded companies engage with capital markets — and could its ambitious $21 billion initiative establish a model for Bitcoin-centric balance sheet strategies?
Small player, significant impact
This company’s (previously MicroStrategy) position within U.S. capital markets is evolving in ways that were largely unforeseen just a few years back. Once recognized mainly as an enterprise software provider, it has transitioned into one of the most prominent proxies for Bitcoin (BTC) and a notable participant in equity financing throughout 2024—despite its relatively small market capitalization.
As of March 25, the company boasts a market cap of $87.64 billion, ranking it 109th among U.S. firms and 211th globally. Although this places it considerably below the largest public corporations, its equity fundraising activities in 2024 are remarkable.
Per Bloomberg Intelligence data highlighted by Matthew Sigel, Head of Digital Assets Research at VanEck, this company accounts for a mere 0.07% of the U.S. equity market by value, yet it represents 16% of the total equity raised or announced in 2024.
A significant portion of this fundraising stemmed from two key offerings: one being a $2 billion convertible note issuance finalized in November 2024 and the second, announced in October 2024, which forms part of a larger strategy aiming to gather $21 billion over a three-year span.
By the end of December, the company had already secured $561 million, much of which is earmarked for Bitcoin acquisitions—a tactic that has increasingly become part of its strategy in recent years.
Within the software industry, these two transactions represented over 70% of the $39.5 billion in new equity raised in 2024. This places software as the leading sector for fresh offerings that year, followed by biotechnology, oil and gas, REITs, and aerospace and defense.
Interestingly, only biotechnology and REITs have consistently appeared among the top five sectors in recent years. The company’s extensive involvement in the software sector makes its influence particularly pronounced.
Few firms of this size have aggressively pursued equity markets in 2024, and even fewer have done so with such a focused objective—stacking Bitcoin via corporate balance sheet expansion.
In this regard, its financial maneuvers are less about traditional software growth and more about sizable asset allocation. Let’s break down what’s unfolding behind the scenes.
Reinforcing the Bitcoin thesis
The company has persisted with its Bitcoin acquisition approach in early 2025, adding 6,911 BTC for around $584.1 million at an average price of $84,529 per coin, reinforcing its status as the largest publicly traded entity in terms of Bitcoin holdings.
As of March 25, it possesses a total of 506,137 BTC, purchased for about $33.7 billion, with an average acquisition cost of $66,608. At Bitcoin’s current value of roughly $87,000, these holdings translate into a worth exceeding $44 billion, showcasing an unrealized gain of approximately $10.3 billion, or around $20,392 per BTC.
Year-to-date, the company has recorded a 7.7% yield on its BTC. This acquisition occurred shortly after the company reaffirmed its strategy to raise funds via Class A strike preferred stock.
While the filing specifies that the proceeds may be used for “general corporate purposes,” past actions imply a significant portion will likely be dedicated to the acquisition of crypto assets.
The company’s approach significantly differs from that of other corporate Bitcoin holders. For instance, Tesla retains around 11,500 BTC, while Block (previously Square) holds a little over 8,000 BTC—both firms bought years ago and have primarily maintained static positions.
In contrast, this company has executed multiple acquisitions nearly every quarter since 2020 and remains the sole publicly traded firm with a clearly defined plan to accumulate Bitcoin as a central treasury reserve asset.
$MSTR shares continue to reflect Bitcoin’s price fluctuations. On March 24, amidst a robust recovery in U.S. equities—where the Nasdaq index surged by 2.27%—the company’s stock rose more than 10%, closing at $335.72, resulting in a market cap increase of roughly $8 billion, despite the absence of any significant business news or earnings report.
This correlation is no coincidence. Historically, MSTR has demonstrated a beta exceeding 2.0 compared to Bitcoin, suggesting it amplifies both upward and downward price movements of BTC.
Nevertheless, this strategy is not without its perils. The company carries over $4 billion in long-term debt, largely from convertible notes that mature between 2028 and 2032.
Should Bitcoin encounter prolonged price declines or capital markets tighten, the company may face challenges in refinancing or raising new capital.
According to its latest disclosures, the firm maintains minimal cash reserves relative to its debt obligations, underscoring its dependence on BTC price appreciation for balance sheet stability.
Exploring STRK and financial innovation
STRK is not a conventional stock like MSTR, nor is it a standard bond. Instead, it occupies a unique space—engineered to facilitate fundraising without exerting immediate pressure on existing shareholders.
Launched in January 2025, STRK is part of the larger aim to accumulate $42 billion over three years to support its ongoing Bitcoin strategy. The company initially introduced 7.3 million STRK shares at $80 each, garnering about $563 million, surpassing its original target by more than double.
What exactly does STRK offer to investors? For starters, it delivers an 8% annual dividend, which the company has the option to pay in cash or stock. This steady return has made STRK appealing to those seeking a more stable method to gain exposure to Bitcoin, without the volatility associated with common stocks like MSTR or Bitcoin itself.
Additionally, there’s a conversion feature: if MSTR’s stock price ever rises to $1,000, each STRK share can be converted into 0.1 MSTR shares. However, with MSTR trading around $335 as of March 25, this conversion is not currently applicable.
Since its market debut in early February, STRK has remained relatively stable. Currently priced around $86.6, investors are realizing an effective yield close to 7%, which is considered high by most benchmarks.
Compared to traditional shares, STRK provides the company with significant advantages. It enables capital raising without the immediate issuance of additional MSTR shares, preventing dilution for existing shareholders, and attracts a different class of investor—those looking for income and stability rather than merely betting on Bitcoin’s long-term appreciation.
Nonetheless, STRK is not devoid of risks. Its value is intrinsically linked to the company’s overall performance, which is closely tied to Bitcoin. A decline in Bitcoin prices or pressure to fulfill dividend commitments could diminish STRK’s appeal.
Implications for public capital markets
The company’s standing in 2024 serves as a compelling case study in how capital markets are evolving to accommodate digital assets — not by creating entirely new asset classes, but by reconfiguring existing ones.
By emerging as a notable entity for equity issuance this year, the company highlights an evolving investor preference for exposure to asset strategies facilitated through publicly listed entities, even while maintaining a market share of just 0.07% of total U.S. equities.
Through this endeavor, the company has posited a framework for how publicly traded organizations might act as intermediaries between traditional capital and decentralized assets. It also signifies a progression in the interface between regulated financial instruments and cryptocurrency-native strategies.
What occurs next will depend less on the company itself and more on broader market conditions: the cost of capital, Bitcoin’s status in institutional portfolios, and how regulators and investors perceive these hybrid models.
If access to funding remains unfettered and crypto continues to be sought after as a viable alternative store of value, similar structures are likely to emerge. Conversely, if those conditions aren’t met, this model could remain unique.
Regardless, the company has propelled public markets into uncharted waters, where capital allocation, balance sheet strategies, and exposure to digital assets are increasingly intertwined.