MicroStrategy stays afloat primarily by raising capital through convertible debt offerings and at-the-market equity sales (like selling shares), which they use to buy more Bitcoin as their core treasury asset. Since their software business generates modest revenue, they rely on BTC's price appreciation to grow their holdings' value, effectively using it as collateral for more borrowing—similar to a leveraged bet on crypto. This has worked amid BTC rallies, but critics worry about rising debt (over $4B now) and interest payments if prices stall. For contrast, LeoStrategy flips this by generating actual profits via market makers to buy and stake LEO without going cash flow negative.
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