Strong balance sheet, long-dated debt, and opportunistic equity programs underpin the firm’s bitcoin-focused growth strategy
Strategy, formerly known as MicroStrategy, is reinforcing its position as a bitcoin-forward enterprise through a capital structure designed for flexibility. CEO Phong Le emphasizes that the firm’s access to both equity and debt markets enables sustained accumulation of bitcoin without near-term refinancing pressure.
Capital Structure Supports Bitcoin Strategy
Le explained that the company’s long-dated convertible notes and equity programs provide significant flexibility to navigate market cycles. The first debt maturity does not occur until December 2025, minimizing liquidity stress and allowing the firm to opportunistically raise capital depending on market conditions.
Strategy’s approach combines at-the-market equity issuance with low- or zero-coupon convertibles, giving management discretion to select the optimal funding method for each environment. According to Le, this flexibility is a core driver behind the company’s ability to continually increase its bitcoin holdings.
Bitcoin Accumulation and Shareholder Alignment
The firm currently holds more than 158,000 BTC on its balance sheet, and Le says shareholders are aligned with Strategy’s identity as a hybrid enterprise combining software operations with a bitcoin treasury strategy. Excess cash flow from the software business is being deployed into bitcoin, while capital-market access ensures the company can scale holdings efficiently.
Market Outlook and Strategic Advantage
Despite bitcoin price volatility, Strategy maintains confidence in its model. Le argues that the firm’s track record through multiple market cycles validates its approach and provides a competitive edge. Analysts note that successful execution of the current convertible note strategy could trigger strong gains for both bitcoin and Strategy shares, reinforcing the firm’s long-term accumulation plan.
By leveraging a flexible capital stack and disciplined deployment, Strategy positions itself to continue expanding its bitcoin holdings while maintaining operational and financial stability. This combination of strategic funding and crypto exposure underpins the company’s long-term growth story.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.