Is Strategy Quietly Reshaping Capital Markets?

Table of Contents

• Small fish, big splash
• Strategy doubles down on its BTC thesis
• STRK and financial engineering
• What this means for public markets

Small Fish, Big Splash

Strategy, formerly known as MicroStrategy, is altering its role in the U.S. capital markets. Once known as an enterprise software firm, it has emerged as a leading Bitcoin (BTC) proxy and an active participant in equity financing as of 2024, despite its relatively small market share.

As of Mar. 25, Strategy boasts a market capitalization of $87.64 billion, ranking 109th among U.S. companies, and represents only 0.07% of the U.S. equity market by value while accounting for 16% of all equity raised in 2024. This transformation is indicative of Bitcoin’s power to attract capital.

Several funding efforts contributed to this, including a $2 billion convertible note issuance in November 2024 and a broader plan to raise $21 billion over three years, with $561 million secured for Bitcoin purchases by the end of December.

Strategy Doubles Down on Its BTC Thesis

In early 2025, Strategy maintained its aggressive Bitcoin acquisition strategy, purchasing 6,911 BTC for approximately $584.1 million, increasing its total holdings to 506,137 BTC valued at over $44 billion at current prices. This approach positions Strategy as the largest public company holder of Bitcoin.

The firm has shown a consistent ability to raise equity, with its strategies diverging from other corporate holders like Tesla and Block. Strategy’s stock price has historically mirrored Bitcoin trends, reflecting a high correlation with BTC market movements.

STRK and Financial Engineering

In early 2025, Strategy launched STRK, its Series A Perpetual Strike Preferred Stock. STRK is designed to raise capital without immediate pressure on existing shareholders and offers an 8% annual dividend, payable in cash or stock.

While STRK presents opportunities for more stable investor income, it is still tied to Bitcoin’s performance, making it not risk-free. The instrument enables Strategy to raise funds without diluting existing common stock shares directly.

What This Means for Public Markets

Strategy’s activities showcase the adaptation of capital markets in response to digital assets, reflecting an evolving appetite for exposure to asset strategies through traditional entities. The company has established itself as a primary source of equity issuance during 2024 while maintaining a limited market value compared to U.S. equities.

This transformation suggests that public companies could serve as intermediaries between established capital and decentralized assets. The future depends on factors like capital costs, Bitcoin’s integration into institutional portfolios, and regulatory responses to these hybrid financial models. If conditions remain favorable, more companies may adopt similar strategies, but a downturn could confine this model to Strategy alone.