Case Details

Strategy Incorporated, formerly known as MicroStrategy Incorporated (NASDAQ: MSTR), was a business software provider that aggressively invested in Bitcoin starting in 2020 as part of its treasury strategy. By 2024, the company became the second-largest corporate holder with over 2% of all Bitcoin issued. Led by cofounder Michael Saylor, the executive chairman and former CEO, the company saw Bitcoin as a superior store of value compared to traditional assets. It believed Bitcoin offered long-term value preservation in an inflationary environment and served as a hedge against fiat currency devaluation.

By 30 June 2025, Strategy held 597,325 Bitcoin acquired at an average cost of USD70,982 per Bitcoin, totaling an investment of USD42.4bn. This investment was financed through the issuance of equity, convertible notes, and surplus cash from operations.

In 2024, Strategy’s share price surged over 400%, reaching a peak of USD473.83 per share on 20 November 2024. On 30 June 2025, its share price was USD404.23, and market capitalization stood at USD120.5bn, reflecting a substantial premium over its net asset value (NAV) of USD50.4bn.

Students can learn from this case how a company transformed its business model from a business software company by aggressively adopting Bitcoin as a primary treasury reserve asset. This case illustrates the strategic use of equity issuance and debt financing to fund large-scale cryptocurrency investments and the impact such decisions have on company valuation, shareholder wealth, and market perception. It shows the potential for significant value appreciation and the financial risks associated with heavy exposure to a volatile asset.