MicroStrategy—now working as Strategy™—has constructed probably the most aggressive Bitcoin treasury on the planet. However its true innovation isn’t simply holding Bitcoin. It’s in the way it funds the buildup of Bitcoin at scale with out giving up management or diluting shareholder worth.
The engine behind this? A meticulously designed capital stack—a multi-tiered construction of debt, most well-liked inventory, and fairness that appeals to several types of traders, every with distinctive danger, yield, and volatility preferences.
That is greater than company finance—it’s a blueprint for Bitcoin-native capital formation.
What Is a Capital Stack?
A capital stack refers back to the layers of capital an organization makes use of to finance its operations and strategic targets. Every layer has its personal return profile, danger degree, and compensation precedence within the occasion of liquidation.
Strategy’s capital stack is designed to do one factor exceptionally properly: convert fiat capital into Bitcoin publicity—effectively, at scale, and with out compromise.
The Stack: Ordered by Precedence
Strategy’s capital stack includes 5 core devices:
1. Convertible Notes
2. Strife Most well-liked Inventory ($STRF)
3. Strike Most well-liked Inventory ($STRK)
4. Stride Most well-liked Inventory ($STRD)
5. Frequent Fairness ($MSTR)
These layers are ranked from highest to lowest in compensation precedence. What makes this construction distinctive is how every layer balances draw back safety, yield, and Bitcoin publicity—providing institutional traders fixed-income options with various levels of correlation to Bitcoin.
Convertible Notes: Senior Debt with Elective Upside
Strategy’s capital stack begins with convertible notes—senior unsecured debt that may convert into fairness.
- Draw back: Low danger, excessive precedence in liquidation
- Upside: Modest except transformed
- Enchantment: Institutional debt traders searching for safety with non-compulsory Bitcoin-adjacent upside
These notes have been Strategy’s earliest fundraising instruments, enabling the corporate to boost billions in low-interest environments to build up Bitcoin with out issuing fairness.
Strife ($STRF): Funding-Grade Yield
Strife is a perpetual most well-liked inventory designed to imitate high-grade mounted revenue.
- 10% cumulative dividend, paid in money
- $100 liquidation desire
- No conversion rights or Bitcoin upside
- Compounding penalties on unpaid dividends
- Low volatility, medium danger profile
Strife targets conservative capital—allocators who need predictable revenue with out fairness or crypto publicity. It’s senior to different preferreds and customary inventory, making it a high-quality fixed-income proxy constructed atop a Bitcoin treasury.
Strike ($STRK): Yield + Bitcoin Optionality
Strike is convertible most well-liked inventory—bridging mounted revenue and fairness upside.
- 8% cumulative dividend
- Convertible into $MSTR at $1,000 strike
- Paid in money or Class A shares
- Bitcoin publicity by way of conversion choice
- Medium volatility, low danger
Strike appeals to traders who need revenue with non-compulsory participation in Bitcoin upside. In bullish Bitcoin cycles, the conversion choice turns into helpful—providing a hybrid between bond-like stability and equity-like potential.
Stride ($STRD): Excessive Yield, Excessive Danger
Stride is probably the most junior most well-liked—non-cumulative, perpetual inventory issued with excessive yield and few protections.
- >10% dividend, provided that declared
- No compounding, no conversion, no voting rights
- Highest relative danger amongst preferreds
- Liquidation precedence above frequent fairness, however under all others
Stride performs a vital position. Its issuance improves the credit score high quality of Strife, including a subordinate capital buffer beneath it—just like how mezzanine debt protects senior tranches in structured finance.
Stride attracts yield-hungry traders, enabling Strategy to boost capital with out compromising extra senior layers.
Frequent Fairness ($MSTR): Pure Bitcoin Beta
On the base is Strategy’s frequent fairness—probably the most unstable, least protected, however highest potential instrument within the stack.
- Limitless upside
- No dividend, no precedence
- Full publicity to Bitcoin volatility
- Voting rights, long-term possession
Frequent fairness is for conviction-driven traders. Over the previous 4 years, this layer has attracted capital from funds and people aligned with Strategy’s Bitcoin thesis—traders who need maximal upside from a company Bitcoin technique.
The Huge Image: Saylor Is Concentrating on the Fastened Revenue Market
This isn’t only a financing mechanism—it’s a direct problem to the $130 trillion world bond market.
By issuing devices like $STRF, $STRK, and $STRD, Strategy is providing Bitcoin-adjacent yield automobiles that take in demand from throughout the capital spectrum:
- Institutional traders searching for investment-grade yield
- Hedge funds chasing structured upside
- Yield hunters prepared to go down the stack for returns
Every instrument behaves like an artificial bond, but all are backed by a Bitcoin accumulation engine.
As Director of Bitcoin Strategy at Metaplanet, Dylan LeClair put it: “Saylor is coming for the entire fixed income market.”
Somewhat than problem conventional bonds, Saylor is setting up a Bitcoin-native capital stack—one which unlocks liquidity with out ever promoting the underlying asset.
Why It Issues: A Mannequin for Bitcoin Treasury Strategy
Strategy’s capital construction is greater than innovation—it’s a monetary working system for any public firm that wishes to monetize Bitcoin’s rise whereas sustaining capital self-discipline.
Key takeaways:
- Each layer matches a particular investor want: From low-risk debt to speculative yield
- Capital flows in, Bitcoin stays put: Preserving treasury place whereas scaling
- No single instrument dominates: The stack is diversified by design
- Management is retained: Most securities are non-voting, non-convertible
For firms severe about constructing a Bitcoin-native steadiness sheet, that is the playbook to check.
Saylor isn’t simply stacking Bitcoin—he’s engineering the monetary infrastructure for a financial paradigm shift.
Disclaimer: This content material was written on behalf of Bitcoin For Firms. This text is meant solely for informational functions and shouldn’t be interpreted as an invite or solicitation to accumulate, buy, or subscribe for securities.
