MicroStrategy reported a massive expansion of its Bitcoin treasury in FY2025, ending the year with 713,502 BTC (3.4% of total supply) after raising over $25 billion in capital. The company successfully pioneered 'digital credit' via preferred equity issuances, capturing 33% of the US preferred equity market and establishing a $2.25 billion USD cash reserve to guarantee multi-year dividend coverage. Ended 2025 with 713,502 Bitcoin, representing 3.4% of the total terminal supply.
MicroStrategy reported a massive expansion of its Bitcoin treasury in FY2025, ending the year with 713,502 BTC (3.4% of total supply) after raising over $25 billion in capital. The company successfully pioneered 'digital credit' via preferred equity issuances, capturing 33% of the US preferred equity market and establishing a $2.25 billion USD cash reserve to guarantee multi-year dividend coverage. Ended 2025 with 713,502 Bitcoin, representing 3.4% of the total terminal supply.
MicroStrategy reported a massive expansion of its Bitcoin treasury in FY2025, ending the year with 713,502 BTC (3.4% of total supply) after raising over $25 billion in capital. The company successfully pioneered 'digital credit' via preferred equity issuances, capturing 33% of…
Despite a difficult Bitcoin market and large mark-to-market losses, management was reassuring and confident, repeatedly emphasizing balance-sheet durability, the Stretch/digital credit opportunity, and long-term Bitcoin fundamentals, while telling newer investors to 'hold on.'
Guidance tone
Established a $2.25 billion USD cash reserve, providing over 2.5 years of dividend and interest coverage to de-risk the balance sheet.
Management only briefly mentioned AI, pointing to the software business's cloud transition and the 'intersection of AI and BI.' Fong Lee said cloud revenue rose 65% year over year and total software revenue turned from decline to 3% growth, but gave no detailed AI demand or monetization metrics.
Raised over $25 billion in 2025. Despite a difficult Bitcoin market and large mark-to-market losses, management was reassuring and confident, repeatedly emphasizing balance-sheet durability, the Stretch/digital credit opportunity, and long-term Bitcoin fundamentals, while telling newer investors to 'hold on.'
Despite a difficult Bitcoin market and large mark-to-market losses, management was reassuring and confident, repeatedly emphasizing balance-sheet durability, the Stretch/digital credit opportunity, and long-term Bitcoin fundamentals, while telling newer investors to 'hold on.'
“Robinhood, in fact, launched the first ever Preferreds on their platform because of the demand and the liquidity that they saw in Stretch.”
“announcement of the BlackRock Bitcoin Volatility Income Fund... they were going to sell volatility or generate income. And there's a lot of people that speculate that will decrease the volatility of Bitcoin and put a more stable floor”
Square Cash App is serving as a key retail distribution channel for MSTR's digital credit products.
“It's NASDAQ listed. It has a four-letter ticker. It's easily accessible to folks. It's now accessible on Robinhood and Square Cash App and pretty much anywhere else that you can buy a security.”
… feat of financial engineering. And it's extremely over collateralized. After you take out all instruments that are senior to Stretch, we still have 5.6X collateral over Stretch. And so, it's an over collateralized instrument. And then after that, we've added $2.25 billion of U.S. dollar reserves. So, we have two to three years of dividend coverage. I had mentioned that liquidity of Stretch is trading extremely well. It's NASDAQ listed. It has a four-letter ticker. It's easily accessible to folks. It's now accessible on Robinhood and Square Cash App and pretty much anywhere else that you can buy a security. Next slide. So let's talk about our balance sheet. I've seen a lot of questions. We get them from investors. We get them from shareholders. We get them from people on X. What's going on with strategies balance sheet? Are you worried that when Bitcoin price drops that you are going to have issues with your convertible bonds? Are you going to have issues paying your dividends? Are you going to have to sell Bitcoin? The short answer is I'm not worried. We're not worried. And no, we're not having issues. What's the reason? One, we have a BTC reserve at $60 billion. This was as of …
Robinhood built and launched an entirely new product category (Preferreds) specifically to capture the massive retail demand for MSTR's 'Stretch' instrument. — Demonstrates MSTR's outsized influence on retail brokerage product roadmaps and highlights a new revenue/volume driver for Robinhood.
… raise $9.5 billion today. In three months, in 72,300 Bitcoins, it will be shown that we're highly liquid and able to access capital. And we've paid dividends every single month, every single quarter since our credit rating. Next slide. So what are we going to do to make Stretch even better? In addition to improving the credit quality, we've been working with brokerages like Robinhood and Cash App to get Stretch and Preferreds listed there. Robinhood, in fact, launched the first ever Preferreds on their platform because of the demand and the liquidity that they saw in Stretch. We've been working with wire houses, wealth management, broker dealers, RIAs to help explain Stretch. We've integrated Stretch now into crypto. So just like you saw MSTR turn into MSTY, MSTU, et cetera, we're seeing Buck and other coins like Saturn, Apex, APYX, and TradFi platforms starting to launch products on top of Stretch. And we expect over time Stretch will be tokenized. We'll integrate with ETFs also. We started, we've been involved in industry conference, leverage finance conferences, teaching sessions, and so we're telling everybody about Stretch. And we engaged in digital marketing you might have …
Morgan Stanley and other major investment banks are actively participating in underwriting and distributing MSTR's massive equity and preferred capital raises.
“some of the largest banking partners in the world, Morgan Stanley, Barclays, Mollis, TD, Benchmark, Clear Street, have all been participants in these markets, and they give us distribution out to wealth management”
… were once again the largest issuer of equity. We were 8% of the entire equity capital markets, 6% to the common equity market, and 33% of the preferred equity market. We are getting people to invest in our company. through equity raises and preferred raises, and turn that into Bitcoin, Bitcoin per share, and Bitcoin yield to our shareholders. And we're doing it with the intersection of traditional finance. So some of the largest banking partners in the world, Morgan Stanley, Barclays, Mollis, TD, Benchmark, Clear Street, have all been participants in these markets, and they give us distribution out to wealth management and and to retail and to institutions. So we've been very successful in the last year with continuing our strategy. Next slide. You'll see here, in addition to getting folks to participate in our equity raises and our equity capital markets, we continue to add more and more research analysts. Here you can see price targets and you can see they all have buy ratings on strategy. Next slide. So let me talk about digital credit and what are we doing in digital credit and why digital credit is important. Next slide. First, I mentioned 2025 marked the launch of digital …
MSCI decided against a proposal that would have excluded digital asset treasury companies from its global indices, preserving MSTR's index inclusion and avoiding forced selling by passive funds.
“MSCI determined not to implement their initial proposal. And as a result, we have not been excluded from MSCI's indices.”
… could have excluded companies whose digital asset holdings represented more than 50% of total assets. We felt it was important for us to be a voice on this matter, and we submitted formal written feedback to MSCI, We noted that this threshold would, in our opinion, be discriminatory towards digital assets. It's arbitrary. And in many ways, I think the proposal was unworkable and that it rested on a mischaracterization of strategy. As a result, MSCI determined not to implement their initial proposal. And as a result, we have not been excluded from MSCI's indices. I'd note strategy is an operating company. We have 30 plus years of history in software and tech. We have 1500 employees. Last year in 2025, we generated $477 million in annual revenue. And while our Bitcoin holdings has grown significantly from a balance sheet perspective, we are an operating company with a treasury balance sheet built upon a commodity. And lastly, look, on a final note, I just want to say thank you. We appreciate the strong support we received from both active and passive. retail and institutional investors, regulators and policymakers, all in support of our efforts on index inclusion. We thank you …
BlackRock's new Bitcoin Volatility Income Fund is expected to structurally dampen Bitcoin's volatility by selling volatility to generate yield, maturing the asset class.
“announcement of the BlackRock Bitcoin Volatility Income Fund that came like about a week ago where they said they were going to sell volatility or generate income. And there's a lot of people that speculate that will decrease the volatility”
Hi, thank you, everybody. Really useful presentation. I took a ton of notes. But I want to ask you a two-part question. I apologize, it's two parts. On slide 53, you talked about quantum vulnerability of Bitcoin. And Uh, and I apologize. I know it's getting a little nerdy, but I know a lot of people have questions about quantum vulnerability because of course, Bitcoin could upgrade its network, but I know there's three types of wallets that remain quantum vulnerable. You know, one is Satoshi because he used a paid to public key, you know, a really old wallet. And then anyone who's since Bitcoin reveals their public key, um, And then, as you know, the Taproot wallets actually are somewhat…
… consensus at the right time to do the right things. The second topic is really one of the catalysts for Bitcoin price to improve. I think the fundamental catalysts are regulatory support. We have the most constructive constructive set of financial regulators in the history of the industry right now the head of the fed the head of the treasury the head of the cftc the head of the sec and the white house has a digital assets czar right those five things are massive bull flags they're all very positive and And generally, you would expect that something good will come probably out of the CFTC or the SEC as they are constructive about facilitating financial companies to innovate in the digital asset space, right? I would have been skeptical about that two years ago. But I think for you to be skeptical about their support for digital innovation today would be – would be ignoring all the words from everybody in those positions. And I think that the second catalyst will be banking adoption, the formation of the banking credit networks. As the large banks and as companies like Schwab, they start to allow you to trade, Bitcoin, custody, crypto, Bitcoin, borrow against Bitcoin. They're going to legitimize the asset and they're going to decrease the volatility of the asset. They're going to improve the usefulness of the asset. You know, you're aware of the announcement of the BlackRock Bitcoin Volatility Income Fund that came like about a week ago where they said they were going to sell volatility or generate income. And there's a lot of people that speculate that will decrease the volatility of Bitcoin and put a more stable floor into the asset. So I think the actions by big finance, the actions by the big banks, and the actions by the financial regulators – are the fundamentals. I mean, those are the fundamental things. And if you were to light a candle and pray, you know, to the gods of the cryptosphere, you know, you would say, I want pro-digital assets regulators, I want pro-digital assets banks, and I want pro-digital assets financial innovations, like BlackRock's bringing to the market, like we're bringing to the market, right? You know, like STRC. fundamentally, the industry is going to move forward because of enlightened regulation, engaged, thoughtful banking, and then innovative finance. And that's what we're doing, and that's what we see right now.
Schwab and other large financial institutions are expected to increasingly offer Bitcoin trading, custody, and lending, which will legitimize the asset and reduce its volatility.
“As the large banks and as companies like Schwab, they start to allow you to trade, Bitcoin, custody, crypto, borrow against Bitcoin. They're going to legitimize the asset and they're going to decrease the volatility of the asset.”