As we speak, Technique is without doubt one of the most essential establishments in cryptocurrency, however it didn’t begin out that manner. Initially referred to as MicroStrategy, the corporate co-founded by Michael Saylor—probably the most influential figures on the planet of Bitcoin—first made its mark in software program.
Now, nonetheless, it’s finest identified for its aggressive technique of buying Bitcoin for its company reserves, with Saylor changing into a key figurehead for the institutional adoption of the asset.
Right here’s all the pieces else you have to find out about Technique and its relationship with Bitcoin.
What’s Technique?
Earlier than it added Bitcoin to its steadiness sheet, Technique was finest identified for its enterprise intelligence software program options, which had been designed to assist companies extra simply analyze information for improved resolution making.
Based in 1989 by Michael Saylor, Technique rapidly turned profitable, going public and buying and selling on the NASDAQ in 1998 as MSTR. However simply two years later, Saylor and two different high executives at Technique needed to settle a case with the SEC, which alleged that the corporate had “materially overstated revenues and earnings from the gross sales of software program and data providers.”
After a short spike in its share value in 2000, MSTR traded in a decent vary for the subsequent 20 years, solely starting to make a serious transfer upwards on the finish of 2020—the identical 12 months it introduced its first Bitcoin buy.
Till early 2025, Saylor’s firm operated as MicroStrategy—however dropped the “Micro” in February, choosing a extra highly effective and constructive tone with simply Technique. The rebrand turned synonymous with the favored The Social Community movie reference by which Mark Zuckerberg is suggested to the drop “The” from “The Fb.”
Technique’s Bitcoin treasury reserve
In 2020, Technique made a groundbreaking transfer: the corporate adopted Bitcoin as its major treasury reserve asset. Involved concerning the devaluation of the US greenback and fiat foreign money on account of inflation, Saylor spearheaded the corporate’s first buy of $250 million in Bitcoin as a hedge in opposition to financial uncertainty.
“This funding displays our perception that Bitcoin, because the world’s most widely-adopted cryptocurrency, is a reliable retailer of worth and a lovely funding asset with extra long-term appreciation potential than holding money,” he mentioned on the time.
The corporate’s Bitcoin shopping for technique has developed over time and shifted to primarily utilizing the sale of convertible notes to lift funds to purchase extra Bitcoin. In different phrases, Technique makes use of short-term debt raises by way of convertible notes that permit buyers to ultimately money in for Technique inventory. It then makes use of the funds raised from the sale of the notes to purchase Bitcoin.
This technique has in the end been adopted by different publicly traded firms like MARA and Riot Platforms. In December, Saylor likened this technique to the event of Manhattan actual property, telling CNBC that, “Each time Manhattan actual property goes up in worth, they subject extra debt to develop extra actual property.”
In January 2025, the corporate introduced the providing of latest inventory–STRK–as a brand new manner for it to lift cash to purchase Bitcoin. Promoting shares for $80 a chunk, the agency aimed to seize one other $584 million for Bitcoin purchases to construct out its treasury. The agency introduced one other $2 billion convertible senior notes sale in February 2025.
The technique of elevating debt to purchase Bitcoin has in the end been adopted by different publicly traded firms like MARA and Riot Platforms. In December, Saylor likened this technique to the event of Manhattan actual property, telling CNBC that, “Each time Manhattan actual property goes up in worth, they subject extra debt to develop extra actual property.”
As Technique has develop into ever extra carefully intertwined with Bitcoin, the corporate now refers to itself because the “World’s First and Largest Bitcoin Treasury Firm” by way of its investor relations web page.
Michael Saylor, Bitcoin bull
Although Michael Saylor is now one of many loudest voices advocating for Bitcoin, he wasn’t all the time a Bitcoin bull.
Simply seven years earlier than his firm adopted the crypto as its most important reserve asset, Saylor posted on Twitter that “#Bitcoin days are numbered. It looks as if only a matter of time earlier than it suffers the identical destiny as on-line playing.”
#Bitcoin is a swarm of cyber hornets serving the goddess of knowledge, feeding on the hearth of reality, exponentially rising ever smarter, quicker, and stronger behind a wall of encrypted vitality.
— Michael Saylor⚡️ (@saylor) September 18, 2020
Since then, Saylor has achieved an entire 180°, claiming Bitcoin is the most effective long-term asset to carry whereas committing to “shopping for the highest eternally,” referring to constantly buying the asset at its peak costs—which Technique continues to do.
In Saylor’s view, which means he is likely to be shopping for Bitcoin at $13 million, the value goal he’s established for the asset over the subsequent 21 years as he expects it to take up a bigger share of whole world capital.
The case in opposition to Technique’s Bitcoin reserve
Technique’s persistent Bitcoin acquisitions by way of the sale of debt has confronted scrutiny by analysts and media within the house. In November 2024, Robinhood-backed Sherwood Media outlined the “math downside,” with MSTR being price 3x the quantity of BTC that it holds and the potential of compelled liquidations in a drawdown.
These concepts have seeped into the broader crypto group as effectively, with previously bullish Citron Analysis taking a brief place in November 2024, betting on the share value of MSTR to go down.
Citron’s notes counsel MSTR is “overheated” and not required to achieve publicity to Bitcoin investments.
If the MSTR share value falls sufficient, Technique may very well be compelled to promote Bitcoin to repay greater than $4 billion in convertible notes, “successfully reversing its ‘perpetual movement machine’…which might additional lower Bitcoin’s value,” based on Sherwood Media.
The way forward for Technique
Whereas Technique has continued its constant Bitcoin purchases, the agency signaled in October it has no plans on slowing down sooner or later. At the moment, Technique introduced plans to lift as much as $42 billion to be able to add extra of the main cryptocurrency asset to its steadiness sheet.
Searching for extra although, the agency handed a vote in January 2025 to implement a 30x improve of its Class A standard shares, permitting it so as to add much more Bitcoin than initially deliberate.
The corporate, which now owns greater than $46 billion price of Bitcoin, is up greater than $15.5 billion on its purchases lifetime based on information from SaylorTracker. It holds 478,740 Bitcoin, making the biggest Bitcoin treasury amongst publicly traded firms as of February 2025.
Saylor’s ambitions for Technique are even grander than including main Bitcoin reserves to the corporate’s steadiness sheet. In October 2024, he outlined his imaginative and prescient for Technique to evolve right into a “Bitcoin financial institution” with a trillion-dollar valuation, creating capital market devices tied to Bitcoin that may be supplied to buyers.
Along with including to its personal holdings, Saylor and firm are actually additionally pitching different main publicly traded firms. In December 2024, he instructed the Microsoft board they might stand to create $5 trillion in worth by adopting Bitcoin. They voted in opposition to including it to their steadiness sheet… for now.
Editor’s be aware: This story was initially revealed on January 8, 2025 and final up to date with new particulars on February 19.
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