Strategy Incorporated

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The business model of Strategy has transformed from a traditional enterprise software provider to a dual-track structure of "software + Bitcoin reserves," with Bitcoin becoming the absolute core:

1. Traditional Software Business:

• The company still provides business intelligence (BI) software solutions to enterprises, including data analysis platforms, cloud services, and customized tools, with clients covering several Fortune 500 companies. However, the profit contribution from this business has been continuously shrinking—In 2024, the operating gross profit margin dropped to about 15%, and in Q1 2025, it further decreased by 10% year-on-year.

2. Bitcoin Reserve Engine:

• The core strategy is to continuously purchase and hold Bitcoin through issuing low-cost debt or equity financing, forming a leveraged cycle of "financing → purchasing coins → appreciation → refinancing." This model transforms the corporate treasury into a Bitcoin accelerator, currently holding 601,550 BTC (accounting for 2.6% of the total circulation), valued at approximately $71 billion (data from July 2025).

Strategy's profits have deviated from the traditional business reliance logic, shifting to focus on the value growth of Bitcoin:

1. Capital appreciation gains: Unrealized profits from Bitcoin holdings amount to nearly $30 billion (average cost $71,268, current price approximately $118,000), becoming the largest source of profit.

2. Leveraged stock price premium: By issuing convertible bonds (such as the "42/42" plan: target fundraising $84 billion) to purchase Bitcoin, the value of holdings is boosted, which in turn drives the stock price to soar (up 175% over the past year). Its stock MSTR often shows a rise of 1.5–2 times that of BTC during bull markets, attracting high-risk preference funds.

3. Traditional business supplement: Although the proportion of software revenue has decreased, it provides stable cash flow to support debt interest payments, maintaining the sustainability of capital operations.

(1) Global Impact on the Cryptocurrency Market - Acceleration of Institutionalization: Strategy, as the largest publicly listed corporate holder, provides a "corporate Bitcoin treasury" model for over 135 listed companies, promoting Bitcoin as a mainstream balance sheet asset. - Reduction of Market Volatility: Large-scale institutional holdings (accounting for 2.6% of circulation) reduce market selling pressure, and combined with tools like ETFs, could lower Bitcoin's volatility from the current 70% to a projected low by 2030 (when institutional holdings reach 10%). - Credit Endorsement Effect: Its continuous accumulation behavior reinforces the narrative of Bitcoin as "digital gold," forcing the traditional financial system to reassess the status of crypto assets (such as the U.S. plan to establish a strategic Bitcoin reserve). (2) Reconstruction of Corporate Financial Logic - Balance Sheet Revolution: Replacing cash reserves with Bitcoin challenges traditional conservative financial strategies (e.g., NVIDIA still primarily uses cash), promoting the "risk asset reserve" paradigm. - Capital Structure Innovation: Attracting funds with different risk preferences through layered securities (common stock MSTR, convertible preferred stock STRK, fixed income notes STRF) to achieve a low-cost financing closed loop.

The layout of Strategy is almost entirely focused on Bitcoin (BTC), with its influence deeply tied to the BTC ecosystem:

1. Direct price manipulation ability:

• A single purchase can trigger market fluctuations (for example, in July 2025, spending $470 million to acquire 4,225 BTC, pushing BTC to break $122,000).
• The holdings dominate the total BTC holdings of global listed companies (the second place, MARAHoldings, only has 50,000 coins), creating a chain reaction of "increased holding expectations → market following suit."

2. Indirect ecological empowerment:

• Stablecoins (such as USDC): The funds for purchasing coins often enter the exchange through USD stablecoin channels, indirectly expanding the clearing scale of stablecoins.
• Ethereum (ETH): Although not directly held, its promotion of Bitcoin ETFs and institutional access paves the way for the approval of ETH spot ETFs, indirectly benefiting the ETH ecosystem.