MicroStrategy has indeed changed its name to “Strategy” and its newly issued convertible preferred stock, trading under the ticker symbol $STRK, will begin trading today on NASDAQ. This move reflects the company’s shift towards focusing more predominantly on Bitcoin as its primary treasury reserve asset. The concept of a “Bitcoin Treasury Strategy” refers to the practice where companies allocate a portion of their treasury reserves into Bitcoin, often viewing it as a hedge against inflation, currency debasement, and as a store of value.
MicroStrategy pioneered this approach by starting to allocate its excess cash into Bitcoin in 2020. By February 2025, MicroStrategy, now renamed Strategy, holds over 471,107 BTC, making it one of the largest institutional holders of Bitcoin. Their strategy involves issuing convertible debt to fund Bitcoin purchases, which not only increases their Bitcoin holdings but also leverages the potential appreciation of Bitcoin’s price to benefit shareholders.
The rebranding from MicroStrategy to Strategy underscores its identity as the world’s first and largest Bitcoin Treasury Company, emphasizing its strategic focus on Bitcoin as a means of corporate treasury management.
The Series A Perpetual Strike Preferred Stock (STRK) was priced at $80 per share, with an 8% cumulative dividend yield. This stock offering is designed to attract investors looking for regular income with less volatility than direct Bitcoin or MicroStrategy’s common stock investment might offer.
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It includes a conversion feature, where holders can convert their shares into MicroStrategy’s Class A common stock at a predetermined rate, initially set at 0.1000 shares of common stock per preferred share. The introduction of STRK is part of Strategy’s broader financial strategy to raise capital for Bitcoin acquisition without immediate dilution of existing shareholders. The stock has seen significant demand, oversubscribed by nearly three times, indicating strong investor interest in this new financial instrument.
Strategy’s business model has pivoted significantly towards Bitcoin, with the company now leveraging its operations and capital raises to increase its Bitcoin holdings, which stand at 471,107 BTC. This makes Strategy one of the largest institutional holders of Bitcoin, behind only the pseudonymous creator Satoshi Nakamoto. The STRK stock offers an 8% dividend, which is cumulative, providing a stable income stream. The conversion feature allows for potential upside if Bitcoin or Strategy’s stock price increases, though the initial conversion price of $1,000 per share of common stock is set high to prevent immediate conversions.
Following Strategy’s lead, other companies like Tesla, Block (formerly Square), and various tech firms have also started incorporating Bitcoin into their treasury reserves. This move is often justified by Bitcoin’s potential as an inflation hedge and its uncorrelated nature to traditional financial markets, providing diversification benefits. With rising concerns over inflation, particularly in a post-2020 economic environment, Bitcoin’s fixed supply of 21 million coins presents it as an attractive asset to protect against the erosion of purchasing power.
This development marks a significant step in Strategy’s evolution as a company deeply intertwined with the cryptocurrency market, particularly Bitcoin. It’s a strategy that not only diversifies its funding sources but also aligns with its long-term vision of integrating Bitcoin into its core business model.