A naukri.com initiative
Bitcoinmagazine
1M
335
How Strategy (MSTR) Built Their Capital Stack to Accelerate Bitcoin Accumulation
- MicroStrategy, now operating as Strategy, has built an aggressive Bitcoin treasury by efficiently financing the accumulation of Bitcoin at scale.
- The innovation lies in Strategy's meticulously designed capital stack, consisting of convertible notes, preferred stock, and common equity.
- The capital stack converts fiat capital into Bitcoin exposure without compromising control or diluting shareholder value.
- Convertible notes are senior debt with optional equity conversion, appealing to institutional debt investors for protection with Bitcoin upside.
- Strife preferred stock offers investment-grade yield without Bitcoin exposure, targeting conservative capital allocators.
- Strike preferred stock provides yield with Bitcoin optionality through conversion into $MSTR at a defined strike price.
- Stride preferred stock offers high yield, high risk without conversion rights or voting rights, attracting yield-hungry investors.
- Common equity provides pure Bitcoin exposure, unlimited upside, and voting rights, appealing to conviction-driven investors.
- This capital stack is a challenge to the global bond market, offering Bitcoin-adjacent yield vehicles backed by a Bitcoin accumulation engine.
- Strategy's financial operating system is a model for any public company looking to monetize Bitcoin's rise while maintaining capital discipline.
Read Full Article
20 Likes
For uninterrupted reading, download the app