In the latest chapter of Bitcoin breaking through mainstream finance, Michael Saylor remains at the core position.
In 2025, Michael Saylor officially renamed the company formerly known as MicroStrategy to Strategy, and through a perpetual preferred stock financing model, transformed the company's treasury into a BTC super warehouse.
In just eighteen months, Strategy has issued several rounds of perpetual preferred stocks, accumulating approximately $6 billion in funds, holding between 607,000 and 628,791 bitcoins, close to 3% of market circulation.
How Perpetual Preferred Stocks Leverage Bitcoin
Perpetual preferred stocks have both debt and equity characteristics, with no maturity date, no voting rights, and an annual dividend of 9% to 10%. Since they do not dilute common stocks, Strategy can continuously add to its Bitcoin position.
On July 29, 2025, Strategy completed the first public offering of STRC perpetual preferred stocks, raising $2.521 billion in a single issuance. Some series dividends are linked to SOFR fluctuations, with redeemable clauses and price protection mechanisms, providing a high-yield and structurally flexible capital instrument.
Saylor calls this financing structure the "BTC Credit Model". The company pre-sets strict issuance conditions, such as the market value must exceed four times the net asset value of Bitcoin before initiating another fundraising.
This disciplined mechanism aims to maintain common stock premium while continuously pushing up the company's available Bitcoin chips.
Concentration Risk Behind High Yields
Over 80% of Strategy's assets directly correspond to Bitcoin prices. When the crypto market weakens, the company's valuation, dividend burden, and ability to raise new funds may be simultaneously pressured.
Critics like hedge fund manager Jim Chanos warn that if Bitcoin prices plummet or market demand for perpetual preferred stocks weakens, Strategy might need to "replace with new" to raise money to pay existing dividends, resembling a Ponzi structure.
Interest rate fluctuations also pose another layer of pressure. Since some series dividends are calculated on a floating basis, the company's cash flow requirements will sharply increase in a high-interest environment, and the limited market size of perpetual preferred stocks, with insufficient secondary liquidity, further intensifies the uncertainty of financing and redemption.
Despite ongoing controversies, Strategy's stock price still outperforms the market during Bitcoin bull markets, with the Sharpe ratio showing risk-adjusted returns superior to simply holding the currency. For many institutions, purchasing perpetual preferred stocks has become a channel to gain Bitcoin exposure without touching the chain or managing custody, driving the institutionalization of crypto assets.
