Strategy, the company formerly known as MicroStrategy, just completed the biggest stock offering in America this year. The software company raised $2.5 billion by selling preferred shares, then used all that money to buy more Bitcoin.
The $2.5 billion offering started small but exploded in size due to investor demand. Originally planned at $500 million, the company increased it five times over. This made it twice as large as Circle’s planned $1 billion public offering earlier this year.
From Software Company to Bitcoin Giant
Strategy’s journey to becoming a Bitcoin powerhouse started in August 2020. That’s when Saylor announced the company would spend $250 million of its cash reserves on Bitcoin instead of keeping it in traditional investments.
The decision came after Saylor grew worried about inflation and the U.S. government printing trillions of dollars during the COVID pandemic. He called cash a “melting ice cube” and viewed Bitcoin as “digital gold” that would hold its value better than dollars.
This marked a dramatic change for Saylor personally. Back in 2013, he had tweeted that Bitcoin’s “days were numbered.” But by 2020, he admitted he had completely forgotten about that negative comment and changed his mind about the cryptocurrency.
The company’s first Bitcoin purchase made headlines as the first major public company to put cryptocurrency on its balance sheet as a treasury asset. Other companies like Tesla and Square soon followed this approach.
The Ambitious 21/21 Plan
Strategy’s Bitcoin buying strategy got even bigger in October 2024 when the company announced its “21/21 Plan.” This ambitious three-year plan aims to raise $42 billion total – $21 billion through stock sales and $21 billion through debt.
CEO Phong Le explained the plan would help the company buy more Bitcoin and increase what they call “BTC Yield” – a measure of how well their Bitcoin strategy performs compared to just holding the cryptocurrency directly.
So far, the plan is working. Strategy has already acquired 194,180 Bitcoin since launching the 21/21 Plan in October, representing about 45% of their target.
The recent $2.5 billion stock sale fits into this larger strategy. Strategy sold 28 million shares of a new type of preferred stock called STRC at $90 per share. These shares will start trading on the Nasdaq exchange and pay monthly dividends to investors.
Company Rebrand Signals Bitcoin Focus
In February 2025, MicroStrategy officially changed its name to “Strategy” and adopted a new logo featuring a stylized Bitcoin “B” symbol. The company also switched its main brand color to orange, which matches Bitcoin’s traditional color scheme.
Saylor said the name change reflected the company’s evolution. “Strategy is one of the most powerful and positive words in the human language,” he explained. The rebrand positions the company as “the world’s first and largest Bitcoin Treasury Company.”
Despite the Bitcoin focus, Strategy still operates its original software business. The company provides business intelligence tools and artificial intelligence software to enterprise customers.
Stock Performance and Risks
Strategy’s stock has delivered massive gains for early investors. Shares traded around $135 when the company first announced its Bitcoin strategy in August 2020. The stock hit record highs of $1,272 in February 2021, representing an 842% increase.
However, the strategy comes with significant risks. Saylor has acknowledged that if Bitcoin’s price dropped 90% and stayed low for several years, shareholders would “suffer” major losses. The company holds most of its assets in Bitcoin rather than traditional cash investments.
As of March 2025, Strategy held only $60.3 million in cash compared to $43.5 billion worth of Bitcoin. This means the company’s financial health depends heavily on Bitcoin’s price performance.
The company has also taken on debt to fund Bitcoin purchases. Strategy issued $2.6 billion in convertible bonds and other debt instruments, adding financial leverage that could amplify both gains and losses.
Market Impact Beyond Strategy
Strategy’s approach has influenced hundreds of other companies to add Bitcoin to their balance sheets. At least 160 publicly traded companies now hold some cryptocurrency as a treasury asset, according to industry tracking data.
Japanese investment firm Metaplanet and medical device company Semler Scientific have adopted similar Bitcoin treasury strategies. Both companies reported significant stock price increases after announcing their Bitcoin purchases.
Saylor has become Bitcoin’s most prominent corporate advocate. He regularly appears on financial news programs and conferences to promote Bitcoin adoption by other companies and institutional investors.
Source:@saylor
The company’s Bitcoin purchases have also affected Bitcoin’s supply and demand dynamics. Strategy’s holdings of 628,791 Bitcoin represent about 3% of all Bitcoin that will ever exist, since Bitcoin’s supply is limited to 21 million coins.
What Lies Ahead
Strategy plans to continue its aggressive Bitcoin accumulation strategy. The company still has about $7.65 billion remaining under its current stock offering programs and plans additional debt offerings as part of the 21/21 Plan.
Bitcoin’s price performance will determine whether Strategy’s bold bet pays off for shareholders. The cryptocurrency has delivered strong returns over the past five years but remains highly volatile.
