Original Title: 8 Lessons in Bitcoin Treasury Strategy from the Strategy (MSTR) Q1 Call
Original author: Nick Ward
Original source:
Compiled by: Daisy, Mars Finance
The first quarter earnings call of MicroStrategy (MSTR) revealed eight capital strategies—from Bitcoin gains to fixed income instruments—that are reshaping the way companies operate their Bitcoin treasury.
MicroStrategy (MSTR) has just released its Q1 2025 earnings presentation, which is not just a routine update but a complete blueprint for expanding its corporate Bitcoin treasury with institutional-level rigor. The company, formerly known as MicroStrategy, elaborated on its evolving capital plans, updated key performance indicators (KPIs), and the financial logic behind each initiative.
If you are a CFO, investor, or strategic operator evaluating Bitcoin as a corporate asset, this earnings call clearly demonstrates how to build a Bitcoin-backed capital structure, measure performance, and achieve long-term value creation. Here are the key points:
Continuously increase the large-scale holdings of Bitcoin
The strategic company currently holds 553,555 BTC - the most among publicly listed companies worldwide. This year, the company has increased its holdings by 106,085 BTC at an average price of about $93,600, bringing its total Bitcoin market value to approximately $52 billion, equivalent to 2.6% of the total Bitcoin supply.
The notable aspect of this move lies not only in the scale of the positions held but also in the speed and consistency of the increases. Since August 2020, strategic companies have been increasing their Bitcoin holdings each quarter without interruption. This is not an opportunistic allocation but a disciplined capital management strategy.
It is worth noting that the Bitcoin held by strategic companies is 100% unencumbered. This makes it a high-quality collateral that can be used for future fixed-income instruments or as collateral for equity-linked products.
For financial leaders in enterprises, this confirms one thing: as long as a sound system and discipline are established, Bitcoin can be managed at scale in a predictable manner, just like any core capital asset.
Raise 10 billion USD within four months
In just the first four months of 2025, the strategic company raised $10 billion through a diversified capital structure:
$6.6 billion raised through ATM equity financing
$2 billion via convertible notes (0% coupon, 35% conversion premium)
1.4 billion USD through preferred shares (Strike & Strife series)
This speed is remarkable. But more importantly, each financing round is evaluated based on Bitcoin-specific KPIs: return on investment, leverage effects, and the impact on net asset value (NAV). The evaluation criteria for each issuance are not traditional metrics (such as earnings per share EPS or earnings before interest, taxes, depreciation, and amortization EBITDA), but rather their contribution to the compound growth potential of Bitcoin per share.
This distinction is crucial: strategic companies (MSTR) are not passively defending against inflation, but are taking proactive measures—converting capital into Bitcoin and then converting Bitcoin into long-term excess returns.
For other listed companies, this provides a roadmap for a Bitcoin capital strategy that does not rely on operating income or waiting for high cash flow quarters.
New Capital Target: 42/42 Plan
In the fourth quarter of 2024, the strategic company launched the "21/21 Plan," aiming to raise $21 billion in equity and $21 billion in fixed income. As of the first quarter of 2025, this goal is nearing completion.
So they directly doubled the target.
The new goal is set as the "42/42 Plan":
$42 billion equity financing
$42 billion fixed income financing
Deadline: end of 2027
What is the significance of this move? Because it establishes a scalable Bitcoin accumulation model through structured capital formation. Strategic companies not only hold Bitcoin but are also building a sustainable operating system.
This capital plan provides the space to expand its scale in accordance with market conditions, utilize different stages of the yield curve, and gradually optimize leverage. This level of financial engineering is worth in-depth study by all asset management teams.
Bitcoin KPI Reconstruction: Yield, Appreciation, and Leverage Effect
The strategic company has raised its internal target for 2025:
Bitcoin yield: the growth amount of Bitcoin per share after deducting dilution effects.
Bitcoin Appreciation: Total Value of Bitcoin Obtained through Capital Operations
Bitcoin Leverage Effect: The value created for shareholders for every dollar of capital raised.
Strategic companies no longer chase traditional operational metrics, but instead focus entirely on the long-term accumulation of Bitcoin per share. This KPI framework makes equity dilution irrelevant—as long as each issuance brings more Bitcoin to every shareholder.
This redefinition of capital efficiency will become increasingly important for all Bitcoin treasury enterprises in the scaling process.
MSTR Stock: Volatility Engine
One of the most surprising insights from the conference call: strategic companies are now starting to track "MSTR yield" — traders can achieve an annualized return of 103% by selling MSTR call options at parity.
The importance of this indicator lies in the fact that it explains why MSTR shares can trade at a premium above their Bitcoin Net Asset Value (NAV). The stock has evolved into a financial product in its own right: highly volatile, highly liquid, and durable. This appeals not only to equity investors, but also to volatility traders, ETF builders, and income-seeking institutions.
This is a real case of the combination of Bitcoin exposure and deep capital markets - creating a new type of return for shareholders without sacrificing Bitcoin custody.
Strike and Strife: Zero Dilution Capital Instruments
In the first quarter of 2025, the strategic company will launch two new types of priority securities:
Strike: 8% Convertible Preferred Stock
Strife: 10% perpetual preferred stock
Both have the characteristics of public trading, high liquidity, and generating returns. More importantly, they offer permanent capital:
No refinancing risk
No collateral required
Unlimited Terms
Strife will not be converted into common stock, meaning zero dilution of shareholder equity. These instruments can strongly support the increase in Bitcoin holdings without compromising shareholder value or control. As these instruments mature, they may give rise to a new type of fixed income market anchored by Bitcoin—this development could attract large capital allocators into the ecosystem.
The strategic company has proposed a revolutionary corporate credit assessment method: using Bitcoin as collateral.
The introduced indicators include:
Bitcoin risks: the possibility of insufficient collateral at maturity.
Bitcoin credit spread: the yield required to offset the risk of Bitcoin
Bitcoin credit threshold rate: Minimum actual return rate required to maintain investment grade rating ( ARR )
Based on this model, Marathon Digital Holdings, Inc. (MSTR) believes that its convertible notes and preferred stock are significantly over-collateralized and should be considered investment grade—despite the market currently classifying them as distressed debt.
Saylor's call? Encourage rating agencies to adopt a Bitcoin collateralized credit framework. If successful, it will give rise to a brand new category of fixed income: Bitcoin collateralized investment-grade corporate bonds.
MNAV and Shareholder Value Creation
The most underrated insight from the earnings call is how strategic companies calculate and maintain their premium on the net asset value of their Bitcoin assets ("MNAV").
Saylor elaborated on the three main drivers of MNAV:
Raise capital at a premium above NAV
Long-term high Bitcoin yield and leverage effect
The capital structure possesses durability and option value.
By using tools like Strife (which generates a 19 basis point Bitcoin yield under a zero dilution premise), strategic companies can create significant shareholder value while maintaining downside protection. Their model demonstrates that financing with 2x NAV and allocating Bitcoin can create more significant long-term value than merely holding Bitcoin.
Final conclusion: Strategic companies are building a financial operating system for Bitcoin.
This earnings call is not just a progress update, but also a vision statement.
Strategic companies (MSTR) are not just holding Bitcoin — they are monetizing volatility, using Bitcoin as collateral on their balance sheets, and creating entirely new asset classes in the process.
For CFOs or board members of publicly listed companies evaluating Bitcoin, "whether it is possible to responsibly allocate Bitcoin" is no longer the question. The real question is: do you understand how to make it generate appreciation?
Because those companies that master the methods will gain a capital advantage that other enterprises will never be able to reach.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
103% annual return! How did MSTR stock become the new darling of Wall Street?
Original Title: 8 Lessons in Bitcoin Treasury Strategy from the Strategy (MSTR) Q1 Call
Original author: Nick Ward
Original source:
Compiled by: Daisy, Mars Finance
The first quarter earnings call of MicroStrategy (MSTR) revealed eight capital strategies—from Bitcoin gains to fixed income instruments—that are reshaping the way companies operate their Bitcoin treasury.
MicroStrategy (MSTR) has just released its Q1 2025 earnings presentation, which is not just a routine update but a complete blueprint for expanding its corporate Bitcoin treasury with institutional-level rigor. The company, formerly known as MicroStrategy, elaborated on its evolving capital plans, updated key performance indicators (KPIs), and the financial logic behind each initiative.
If you are a CFO, investor, or strategic operator evaluating Bitcoin as a corporate asset, this earnings call clearly demonstrates how to build a Bitcoin-backed capital structure, measure performance, and achieve long-term value creation. Here are the key points:
The strategic company currently holds 553,555 BTC - the most among publicly listed companies worldwide. This year, the company has increased its holdings by 106,085 BTC at an average price of about $93,600, bringing its total Bitcoin market value to approximately $52 billion, equivalent to 2.6% of the total Bitcoin supply.
The notable aspect of this move lies not only in the scale of the positions held but also in the speed and consistency of the increases. Since August 2020, strategic companies have been increasing their Bitcoin holdings each quarter without interruption. This is not an opportunistic allocation but a disciplined capital management strategy.
It is worth noting that the Bitcoin held by strategic companies is 100% unencumbered. This makes it a high-quality collateral that can be used for future fixed-income instruments or as collateral for equity-linked products.
For financial leaders in enterprises, this confirms one thing: as long as a sound system and discipline are established, Bitcoin can be managed at scale in a predictable manner, just like any core capital asset.
In just the first four months of 2025, the strategic company raised $10 billion through a diversified capital structure:
$6.6 billion raised through ATM equity financing
$2 billion via convertible notes (0% coupon, 35% conversion premium)
1.4 billion USD through preferred shares (Strike & Strife series)
This speed is remarkable. But more importantly, each financing round is evaluated based on Bitcoin-specific KPIs: return on investment, leverage effects, and the impact on net asset value (NAV). The evaluation criteria for each issuance are not traditional metrics (such as earnings per share EPS or earnings before interest, taxes, depreciation, and amortization EBITDA), but rather their contribution to the compound growth potential of Bitcoin per share.
This distinction is crucial: strategic companies (MSTR) are not passively defending against inflation, but are taking proactive measures—converting capital into Bitcoin and then converting Bitcoin into long-term excess returns.
For other listed companies, this provides a roadmap for a Bitcoin capital strategy that does not rely on operating income or waiting for high cash flow quarters.
In the fourth quarter of 2024, the strategic company launched the "21/21 Plan," aiming to raise $21 billion in equity and $21 billion in fixed income. As of the first quarter of 2025, this goal is nearing completion.
So they directly doubled the target.
The new goal is set as the "42/42 Plan":
$42 billion equity financing
$42 billion fixed income financing
Deadline: end of 2027
What is the significance of this move? Because it establishes a scalable Bitcoin accumulation model through structured capital formation. Strategic companies not only hold Bitcoin but are also building a sustainable operating system.
This capital plan provides the space to expand its scale in accordance with market conditions, utilize different stages of the yield curve, and gradually optimize leverage. This level of financial engineering is worth in-depth study by all asset management teams.
The strategic company has raised its internal target for 2025:
Bitcoin yield: 15% → 25%
Bitcoin USD appreciation: 10 billion → 15 billion USD
What do these indicators mean?
Bitcoin yield: the growth amount of Bitcoin per share after deducting dilution effects.
Bitcoin Appreciation: Total Value of Bitcoin Obtained through Capital Operations
Bitcoin Leverage Effect: The value created for shareholders for every dollar of capital raised.
Strategic companies no longer chase traditional operational metrics, but instead focus entirely on the long-term accumulation of Bitcoin per share. This KPI framework makes equity dilution irrelevant—as long as each issuance brings more Bitcoin to every shareholder.
This redefinition of capital efficiency will become increasingly important for all Bitcoin treasury enterprises in the scaling process.
One of the most surprising insights from the conference call: strategic companies are now starting to track "MSTR yield" — traders can achieve an annualized return of 103% by selling MSTR call options at parity.
The importance of this indicator lies in the fact that it explains why MSTR shares can trade at a premium above their Bitcoin Net Asset Value (NAV). The stock has evolved into a financial product in its own right: highly volatile, highly liquid, and durable. This appeals not only to equity investors, but also to volatility traders, ETF builders, and income-seeking institutions.
This is a real case of the combination of Bitcoin exposure and deep capital markets - creating a new type of return for shareholders without sacrificing Bitcoin custody.
In the first quarter of 2025, the strategic company will launch two new types of priority securities:
Strike: 8% Convertible Preferred Stock
Strife: 10% perpetual preferred stock
Both have the characteristics of public trading, high liquidity, and generating returns. More importantly, they offer permanent capital:
No refinancing risk
No collateral required
Unlimited Terms
Strife will not be converted into common stock, meaning zero dilution of shareholder equity. These instruments can strongly support the increase in Bitcoin holdings without compromising shareholder value or control. As these instruments mature, they may give rise to a new type of fixed income market anchored by Bitcoin—this development could attract large capital allocators into the ecosystem.
The strategic company has proposed a revolutionary corporate credit assessment method: using Bitcoin as collateral.
The introduced indicators include:
Bitcoin risks: the possibility of insufficient collateral at maturity.
Bitcoin credit spread: the yield required to offset the risk of Bitcoin
Bitcoin credit threshold rate: Minimum actual return rate required to maintain investment grade rating ( ARR )
Based on this model, Marathon Digital Holdings, Inc. (MSTR) believes that its convertible notes and preferred stock are significantly over-collateralized and should be considered investment grade—despite the market currently classifying them as distressed debt.
Saylor's call? Encourage rating agencies to adopt a Bitcoin collateralized credit framework. If successful, it will give rise to a brand new category of fixed income: Bitcoin collateralized investment-grade corporate bonds.
The most underrated insight from the earnings call is how strategic companies calculate and maintain their premium on the net asset value of their Bitcoin assets ("MNAV").
Saylor elaborated on the three main drivers of MNAV:
Raise capital at a premium above NAV
Long-term high Bitcoin yield and leverage effect
The capital structure possesses durability and option value.
By using tools like Strife (which generates a 19 basis point Bitcoin yield under a zero dilution premise), strategic companies can create significant shareholder value while maintaining downside protection. Their model demonstrates that financing with 2x NAV and allocating Bitcoin can create more significant long-term value than merely holding Bitcoin.
Final conclusion: Strategic companies are building a financial operating system for Bitcoin.
This earnings call is not just a progress update, but also a vision statement.
Strategic companies (MSTR) are not just holding Bitcoin — they are monetizing volatility, using Bitcoin as collateral on their balance sheets, and creating entirely new asset classes in the process.
For CFOs or board members of publicly listed companies evaluating Bitcoin, "whether it is possible to responsibly allocate Bitcoin" is no longer the question. The real question is: do you understand how to make it generate appreciation?
Because those companies that master the methods will gain a capital advantage that other enterprises will never be able to reach.