Michael Saylor has been promoting MicroStrategy (now Strategy) to convert cash into bitcoin reserves since 2020, accumulating over 800,000 BTC. During this period, he has continuously financed bitcoin purchases through convertible bonds, preferred stock, and ATM equity issuance, previously setting higher BTC yield targets and publicly criticizing cash holding strategies.

In terms of capital structure, STRC is designed as a variable-rate perpetual preferred stock that trades close to par value and pays monthly dividends, with proceeds directly used to purchase BTC, creating a cycle of "credit financing → equity premium → more BTC". The motivation is to convert bitcoin volatility into stable returns for credit investors while allowing common stockholders to gain leveraged bitcoin exposure.

Similar cases can be seen in MicroStrategy's early transition from a software company to a bitcoin treasury, followed by several companies issuing bitcoin-related preferred stock. Currently, Strategy is in the expansion phase from a single reserve holding to a complete digital capital-credit-equity stack control.

This essentially represents a transfer of pricing power: bitcoin is structured from a mere reserve asset into a capital product that can be sold in layers, with the mechanism being the demand difference between publicly traded preferred and common stock, allowing the company to continuously absorb external capital at a lower cost and amplify bitcoin ownership per share.

ABAB News · Law of Cognition

Capital layering, volatility becomes income
Equity premium = credit fuel × bitcoin flywheel
To think bigger, one must continuously print more coins