Part 3/11:
MicroStrategy, a relatively small software company with $100 million in annual revenue, has become a giant in crypto circles because of its aggressive Bitcoin strategy. Led by CEO Michael Saylor, the company popularized the concept of being a Bitcoin treasury company. Instead of investing in traditional assets or reinvesting profits into growth, MicroStrategy has utilized debt to amass Bitcoin holdings, effectively turning its treasury into a Bitcoin reserve.
The Strategy: Leveraged Bitcoin Buying
Saylor’s idea is innovative but controversial: raise debt—primarily interest-free convertible notes—and use those funds to purchase Bitcoin. This leverage amplifies gains when Bitcoin’s price rises but also introduces significant risk if the market turns sour.