MicroStrategy—now working as Technique—has constructed probably the most aggressive Bitcoin treasury on the earth. However its true innovation isn’t simply holding Bitcoin. It’s in the way it funds the buildup of Bitcoin at scale with out giving up management or diluting shareholder worth.
The engine behind this? A meticulously designed capital stack—a multi-tiered construction of debt, most well-liked inventory, and fairness that appeals to various kinds of buyers, every with distinctive threat, yield, and volatility preferences.
That is greater than company finance—it’s a blueprint for Bitcoin-native capital formation.
What Is a Capital Stack?
A capital stack refers back to the layers of capital an organization makes use of to finance its operations and strategic objectives. Every layer has its personal return profile, threat stage, and reimbursement precedence within the occasion of liquidation.
Technique’s capital stack is designed to do one factor exceptionally nicely: convert fiat capital into Bitcoin publicity—effectively, at scale, and with out compromise.
The Stack: Ordered by Precedence
Technique’s capital stack contains 5 core devices:
1. Convertible Notes
2. Strife Most well-liked Inventory ($STRF)
3. Strike Most well-liked Inventory ($STRK)
4. Stride Most well-liked Inventory ($STRD)
5. Frequent Fairness ($MSTR)
These layers are ranked from highest to lowest in reimbursement precedence. What makes this construction distinctive is how every layer balances draw back safety, yield, and Bitcoin publicity—providing institutional buyers fixed-income alternate options with various levels of correlation to Bitcoin.
Convertible Notes: Senior Debt with Elective Upside
Technique’s capital stack begins with convertible notes—senior unsecured debt that may convert into fairness.
- Draw back: Low threat, excessive precedence in liquidation
- Upside: Modest except transformed
- Enchantment: Institutional debt buyers looking for safety with non-compulsory Bitcoin-adjacent upside
These notes have been Technique’s earliest fundraising instruments, enabling the corporate to boost billions in low-interest environments to build up Bitcoin with out issuing fairness.
Strife ($STRF): Funding-Grade Yield
Strife is a perpetual most well-liked inventory designed to imitate high-grade fastened revenue.
- 10% cumulative dividend, paid in money
- $100 liquidation desire
- No conversion rights or Bitcoin upside
- Compounding penalties on unpaid dividends
- Low volatility, medium threat profile
Strife targets conservative capital—allocators who need predictable revenue with out fairness or crypto publicity. It’s senior to different preferreds and customary inventory, making it a high-quality fixed-income proxy constructed atop a Bitcoin treasury.
Strike ($STRK): Yield + Bitcoin Optionality
Strike is convertible most well-liked inventory—bridging fastened revenue and fairness upside.
- 8% cumulative dividend
- Convertible into $MSTR at $1,000 strike
- Paid in money or Class A shares
- Bitcoin publicity through conversion choice
- Medium volatility, low threat
Strike appeals to buyers who need revenue with non-compulsory participation in Bitcoin upside. In bullish Bitcoin cycles, the conversion choice turns into useful—providing a hybrid between bond-like stability and equity-like potential.
Stride ($STRD): Excessive Yield, Excessive Threat
Stride is probably the most junior most well-liked—non-cumulative, perpetual inventory issued with excessive yield and few protections.
- >10% dividend, provided that declared
- No compounding, no conversion, no voting rights
- Highest relative threat amongst preferreds
- Liquidation precedence above frequent fairness, however beneath all others
Stride performs a vital function. Its issuance improves the credit score high quality of Strife, including a subordinate capital buffer beneath it—much like how mezzanine debt protects senior tranches in structured finance.
Stride attracts yield-hungry buyers, enabling Technique to boost capital with out compromising extra senior layers.
Frequent Fairness ($MSTR): Pure Bitcoin Beta
On the base is Technique’s frequent fairness—probably the most risky, least protected, however highest potential instrument within the stack.
- Limitless upside
- No dividend, no precedence
- Full publicity to Bitcoin volatility
- Voting rights, long-term possession
Frequent fairness is for conviction-driven buyers. Over the previous 4 years, this layer has attracted capital from funds and people aligned with Technique’s Bitcoin thesis—buyers who need maximal upside from a company Bitcoin technique.
The Large Image: Saylor Is Concentrating on the Mounted Revenue Market
This isn’t only a financing mechanism—it’s a direct problem to the $130 trillion international bond market.
By issuing devices like $STRF, $STRK, and $STRD, Technique is providing Bitcoin-adjacent yield automobiles that take up demand from throughout the capital spectrum:
- Institutional buyers looking for investment-grade yield
- Hedge funds chasing structured upside
- Yield hunters prepared to go down the stack for returns
Every instrument behaves like an artificial bond, but all are backed by a Bitcoin accumulation engine.
As Director of Bitcoin Technique at Metaplanet, Dylan LeClair put it: “Saylor is coming for your entire fastened revenue market.”
Fairly than concern conventional bonds, Saylor is establishing a Bitcoin-native capital stack—one which unlocks liquidity with out ever promoting the underlying asset.
Why It Issues: A Mannequin for Bitcoin Treasury Technique
Technique’s capital construction is greater than innovation—it’s a monetary working system for any public firm that wishes to monetize Bitcoin’s rise whereas sustaining capital self-discipline.
Key takeaways:
- Each layer matches a particular investor want: From low-risk debt to speculative yield
- Capital flows in, Bitcoin stays put: Preserving treasury place whereas scaling
- No single instrument dominates: The stack is diversified by design
- Management is retained: Most securities are non-voting, non-convertible
For firms critical about constructing a Bitcoin-native stability sheet, that is the playbook to check.
Saylor isn’t simply stacking Bitcoin—he’s engineering the monetary infrastructure for a financial paradigm shift.
Disclaimer: This content material was written on behalf of Bitcoin For Firms. This text is meant solely for informational functions and shouldn’t be interpreted as an invite or solicitation to accumulate, buy, or subscribe for securities.
