What Does MicroStrategy / Strategy (MSTR) Do?

MicroStrategy (MSTR) — rebranded as "Strategy" from 2025 — is a publicly traded company renowned for its corporate Bitcoin treasury strategy and is today the largest public holder of Bitcoin in the world. Follow MSTR's price and technical analysis on COINOTAG.

By COINOTAG Research DeskLast updated September 30, 2026Sources

MicroStrategy / Strategy (MSTR) is a business intelligence software company founded in 1989 by Michael Saylor. In August 2020, the company made a historic pivot: deciding to hold its corporate treasury in Bitcoin rather than cash. Since then, management under Saylor has pursued a continuous Bitcoin accumulation strategy, raising capital through convertible bonds and share issuances. In 2025 the company renamed itself "Strategy" to reflect its Bitcoin-first identity.

What Is It and What Does It Do?

Strategy's business model now operates on two distinct layers:

Bitcoin Treasury Company: As of late 2024, the company holds approximately 400,000+ BTC and is actively growing that position. Financing tools include stock issuances, convertible bonds, and preferred shares.
Software Business: Business intelligence and analytics software revenue continues to operate, though it occupies a shrinking share of the company's total story; the enterprise customer base and infrastructure remain in place.

Why Does It Matter?

Corporate Bitcoin pioneer: Strategy is the first and largest example of a publicly traded company adopting Bitcoin as a corporate reserve asset, bringing institutional Bitcoin treasuries into the mainstream. Tesla, Square (Block), and many smaller companies have followed this model.
Leveraged BTC exposure: MSTR shares trade at a premium to the market value of the company's Bitcoin holdings. That premium reflects the market's valuation of the company's leveraged Bitcoin accumulation capacity, continuity, and brand.
The Michael Saylor effect: Saylor is among the most influential figures in institutional Bitcoin adoption. His public statements and X/Twitter activity directly move MSTR's price.
Convertible bond mechanism: The company issues low-interest convertible bonds based on market conditions to purchase Bitcoin — a mechanism designed to grow BTC per share (BTC yield) even as shares dilute.

MSTR vs. Bitcoin price correlation — MSTR share premium/discount to BTC NAV; growth of Bitcoin balance sheet holdings over time

How is MSTR traded?

The underlying (MSTR) trades on its own market during that market's session hours.

MSTR price and technical analysis →

Risks

BTC price risk: MSTR's entire value is anchored to its Bitcoin balance sheet. A severe BTC downturn typically causes MSTR shares to fall several multiples of Bitcoin's own decline.
Debt burden: Convertible bond and preferred share obligations can create liquidity pressure during a prolonged Bitcoin bear market.
Premium risk: MSTR has at times traded at a premium exceeding 2× Bitcoin's net asset value (NAV); if that premium compresses, the share price can fall even without a BTC price move.
Key-man dependency: Saylor's departure risk or health event represents a structural corporate vulnerability given single-person reliance.

COINOTAG Perspective

MSTR is one of the purest and most highly leveraged Bitcoin investment vehicles available on a traditional stock exchange. In a Bitcoin bull market, MSTR can deliver returns that are unmatched among publicly listed assets — but in downturns, convertible bond obligations and premium compression create double-sided pressure. For crypto investors who already hold Bitcoin positions, MSTR adds another layer of leverage, magnifying both potential returns and risks.

Frequently Asked Questions

4 questions

What is MicroStrategy/Strategy (MSTR)?

MicroStrategy (rebranded Strategy in 2025) is a business intelligence software company founded in 1989 that began converting its corporate treasury to Bitcoin in 2020. It is now the largest public company holder of Bitcoin in the world. CEO Michael Saylor is the best-known advocate for institutional Bitcoin investment.

Why does MSTR buy Bitcoin?

MicroStrategy adopted Bitcoin as a corporate reserve asset to protect its cash holdings from inflation. It issues convertible bonds at low interest rates and uses the proceeds to buy Bitcoin. The goal is to continuously grow the amount of Bitcoin held per share (BTC yield).

Why is MSTR more volatile than Bitcoin itself?

MSTR trades at a premium to the net asset value (NAV) of the Bitcoin it holds. This premium creates a leverage effect: when BTC rises, MSTR typically rises faster; when BTC falls, MSTR typically falls faster. The convertible bond obligations amplify this leverage effect further.

Where can I follow MSTR's price and technical analysis?

You can follow MSTR's price, chart and technical analysis on COINOTAG.

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