What Is Strategy (MSTR)? The Bitcoin Treasury Company
Decrypt
by Logan HitchcockFebruary 20, 2026
AI-Generated Deep Dive Summary
Strategy (formerly MicroStrategy), led by co-founder Michael Saylor, has transformed from a software company into a Bitcoin treasury giant. By acquiring Bitcoin as its primary reserve asset, the firm aims to hedge against inflation and economic uncertainty. Saylor's aggressive buying strategy, funded through convertible notes, has made Strategy a key player in institutional crypto adoption.
Originally known as MicroStrategy, the company was founded by Michael Saylor in 1989 and became a leader in business intelligence software. It went public on NASDAQ in 1998 but faced legal challenges with the SEC over financial misstatements. Despite this, the company's share price remained steady until 2020, when it made its first major move by purchasing $250 million in Bitcoin.
Strategy's pivot to Bitcoin has been unconventional. The firm uses convertible notes to raise funds for Bitcoin purchases, a strategy that allows investors to convert their investments into shares later. This approach, while innovative, carries risks: if the company's share price drops significantly, it may be forced to sell Bitcoin to repay its debts. Despite these risks, other companies like MARA and Riot Platforms have followed suit.
In 2024 and 2025, Strategy announced ambitious plans to raise up to $42 billion for Bitcoin acquisitions. This commitment to crypto has solidified the company's position as a major player in the cryptocurrency space. While some critics question the sustainability of its strategy, others see it as a bold move toward institutionalizing Bitcoin.
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Originally published on Decrypt on 2/20/2026