Strategy Inc—formerly MicroStrategy—has become a financial anomaly tethered entirely to Bitcoin. Under Michael Saylor’s leadership, the company has ditched its legacy software business to become a full-blown Bitcoin acquisition vehicle, holding 528,185 BTC worth over $35 billion.
This aggressive transformation has turned Strategy into a unique market phenomenon. Its common stock (MSTR) now functions as a high-beta proxy for Bitcoin exposure. Meanwhile, newly launched preferred shares, STRK and STRF, offer double-digit yields—8% and 10% respectively—yet remain deeply tied to crypto market swings.
In early 2025, Strategy made headlines again with a nearly $2 billion BTC purchase, acquiring over 22,000 coins at an average of $86,969 each. Year-to-date, the company boasts an 11% BTC yield. But the real story lies in the sprawling financial ecosystem built around it—leveraged ETFs like MSTU and MSTX, and inverse products such as SMST, MSTS.L, and 3SMI now allow traders to speculate on Strategy’s equity moves without owning Bitcoin directly.
$MSTR has acquired 22,048 BTC for ~$1.92 billion at ~$86,969 per bitcoin and has achieved BTC Yield of 11.0% YTD 2025. As of 3/30/2025, @Strategy holds 528,185 $BTC acquired for ~$35.63 billion at ~$67,458 per bitcoin. $STRK $STRF https://t.co/1sfyBIglnt
— Michael Saylor⚡️ (@saylor) March 31, 2025
Yet, the structure is not without risks. The volatility of Bitcoin, combined with the mechanics of daily resetting ETFs, introduces performance drag and significant downside exposure. As of April 2025, MSTR is down 8% YTD, tracking Bitcoin’s 16% decline, while leveraged ETFs have plummeted over 37% due to compounding losses.
Saylor insists “volatility is vitality,” framing it as the lifeblood of Strategy’s financial engine. But critics warn this is a leveraged lattice, not a hedge. With each capital raise—most recently via STRF—Strategy funds more Bitcoin buys, creating a reflexive loop of sentiment and exposure.
Also Read: Strategy Acquires 22,048 BTC for $2 Billion, Expanding Holdings to 528,185 BTC
Whether this is visionary financial engineering or a precarious bet on a single volatile asset remains to be seen. One thing is certain: Strategy Inc has become more than a company—it’s the epicenter of a Bitcoin-centric financial galaxy. Investors must weigh the thrill of amplified gains against the shadow of systemic risk.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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