Before answering the question raised in the title, it should be clarified that Michael Saylor, CEO of Strategy (formerly Microstrategy), began with Bitcoin’s purchases (BTC) in August 2020.
As Saylor himself said, at that time the company was against the strings because it had a treasure of 500 million dollars in cash that did not generate any yield, in a context of Pandemia per Covid-19 and with the threat of increasing inflation. On the table there were only two options: to find something that would generate yields or return the money to the shareholders through the repurchase of shares.
Opting the second alternative would have meant staying offside, since it involved losing competitiveness, seeing how their employees were leaving and, ultimately, putting the continuity of the business at risk. After studying different alternatives, Saylor convinced the board of directors that The best exit was with Bitcoin. The first purchase was made with 250 million dollars, half of the cash it had available.
Almost five years later, which began as a plan to protect against inflation became one of the current financial market trends: the creation of BTC strategic reserves. Thus, Strategy became the company that quotes in the stock market with the largest amount of Bitcoin in its treasury.
At the time of publication of this note, The firm accumulates a total of 592,100 BTC.
And the most interesting is how Saylor has shown the world strategies to acquire BTC, as the sale of shares and the issuance of debt, without relying on their operational income.
In fact, as Cryptonoths reported, a good part of BTC’s purchases were financed precisely through the issuance of debt bonds with an interest rate of 0% and long -term expiration deadlines. The interesting thing here is that investors participating in purchases do not receive periodic payments, but benefit whether the issuing firm’s actions, in this case Strategy, go up. Then, they turn those bonds into actions at a higher price.
That is, the benefit of buyers is in the revaluation potential of these actions. The funds obtained are destined to acquire more units of the currency created by Satoshi Nakamoto.
The company implements an investment strategy known as “average cost in dollars” (Dollar Cost average or DCAfor its acronym in English). This consists in making periodic purchases of an asset with bullish potential, with the average of averaging the entrance price over time, instead of trying to hit the lowest point in the market.
Plan 21/21
On October 30, 2024, Saylor announced The launch of the “Plan 21/21”, an initiative to raise 42,000 million dollars Between 2025 and 2027, through a combination of capital and debt financing.
Of that total, 21,000 million dollars will come from the issuance of common and preferential shares, including sales under the ATM mechanism (At-The-Market o Sale in the open market, in Spanish), which allows the company to place shares directly in the open market, depending on the conditions of the moment. This allows the company not to have the need to set a price in advance or make a traditional public offer.
The other 21,000 million dollars will be obtained through fixed income instruments, such as bonds, convertible notes and also preferred shares.
The three -headed monster
Within the framework of Plan 21/21, Strategy chose to use issuance programs in three preferred actions: Strike (STRK), Strife (Strf) and Stride (STRD). As Cryptonotics reported, the preferential actions STRD offer a non -cumulative fixed dividend of 10% per year (10 dollars per share, with a nominal value of 100 dollars), paid in cash quarterly as of September 30, 2025, provided the Board of Directors approves it.
Unlike Strk shares (8% cumulative, convertible) and Strf (10% cumulative with penalties), STRD dividends do not accumulate if they are not declared, which means that Strategy is not obliged to compensate for omitted payments.
Adam Livingston, author of the book “The Bitcoin Age”, define To this trident of shares such as “the three -headed preferential capital monster that harvests capital hungry for the yield of landlords of fixed income and displays it in the toughest assets that humanity knows.” And he adds: “Each broadcast is a liquidity siphon, each section is a Trojan horse, and each coupon in checks sent to investors is simply a bribe to keep them distracted while their money is silently converted into satoshis in cold storage.”
Also, he believes that “The market loves it” because “they are receiving yields”although “what they are really financing is a structurally reflective demand that never sells, never sleeps and never stops buying BTC until the marginal price has.”
For this reason, Livingston compares Strategy with a central bank because it issues actions or debt to buy BTC, increasing its holdings and reducing the offer available in the market. The result of this strategy is a sustained bullish pressure on the price of Bitcoin in the medium and long term.
This is because BTC has a supply limited to 21 million units, whose broadcast is reduced every 4 years by halving. To that, you have to add the coins that Strategy is acquiring and are out of circulation, since their strategy is to hold in the long term. According to Michael Saylor, The BTC price could reach 13 million dollars By 2045.
Risks of this model
The BTC accumulation strategy has received praise but also criticism. As Cryptonotics reported, financial analyst Jacob King compares this model with a repetitive cycle that, according to, It resembles the logic of a Ponzi scheme.
To support its analysis, King uses a graph that shows how the model is based on a sequence that is continuously feedback.
As seen in the previous image, everything starts when a company issues debt or actions to obtain funds with which Bitcoin buys. This purchase reduces the available offer and pushes the rise price, which in turn increases the company’s market capitalization.
King points out that this capitalization increase attracts new investors (not specialized), allowing the cycle with new emissions to be repeated. So far the whole gear works. But what happens if the price of BTC falls? In that scenario, The model becomes unsustainablewhich could lead to catastrophic consequences for investors.
It is that having your balance strongly exposed to BTC, Strategy can face a key risk if the price of the asset falls below a certain threshold (estimated at $ 19,000). In this case, the firm could be forced to sell part of its holdings to cover financial obligations.
If this happens, it would break the narrative that Strategy will not detach from his holdings, which would affect market confidence. Although this scenario is unlikely (but not impossible), a fall in such magnitude would have a devastating impact on the price of Bitcoin.
