Strategy, formerly known as MicroStrategy, is using Bitcoin to build a new kind of capital structure that aims to solve two longstanding challenges in private equity: direct access to retail investors and permanent funding.
According to Chaitanya Jain, Strategy’s Bitcoin Strategy Manager, the company has achieved what many private equity firms have tried to do for more than a decade.
“Since the last decade, private equity has been trying to (i) raise directly from retail and (ii) build continuation or perpetual funds,” Jain said. “Strategy has achieved both. Permanent capital via publicly listed securities on Nasdaq. Digital Equity and Digital Credit backed by Bitcoin.”
Instead of relying on traditional closed-end private equity structures, Strategy raises money through publicly listed securities, opening exposure to alternative-style investments to a broader base of retail investors. At the same time, its model is designed to provide perpetual, rather than cyclical, capital.
At the core of this approach are two Bitcoin-backed products Jain refers to as Digital Equity and Digital Credit, which treat Bitcoin as institutional-grade collateral.
- Digital Equity gives investors leveraged exposure to Bitcoin through Strategy’s capital structure.
- Digital Credit offers credit facilities backed by the company’s Bitcoin holdings.
By converting its Bitcoin reserves into what Jain describes as a perpetual capital engine, Strategy operates in a way similar to a public-equity version of a private equity continuation fund.
Jain calls 2025 “Year 0” for Digital Credit, focused on designing, launching, and scaling Bitcoin-backed credit products in a relatively subdued Bitcoin market.
In 2025, the company raised about $21 billion through a mix of common equity, preferred stock, and convertible debt. That included a $2.5 billion perpetual preferred stock issuance, described as the largest U.S. IPO by gross proceeds that year.
The capital has funded large-scale Bitcoin purchases. Strategy now holds 672,497 BTC, acquired for roughly $50.4 billion at an average price of about $75,000 per coin, with a market value near $61.4 billion based on Bitcoin trading around $91,000.
These positions are heavily leveraged. Strategy employs approximately $15–16 billion in debt and preferred stock, amplifying its exposure to Bitcoin’s price. That leverage has led some analysts to warn the company could help trigger a major market disruption, or “black swan,” in crypto markets in 2026.
The strategy has transformed the firm from a conventional software company into what many observers describe as either the largest corporate Bitcoin treasury or effectively a leveraged Bitcoin investment vehicle. It continually raises capital to accumulate more BTC while offering investors varying levels of exposure through its equity and credit instruments.
Looking ahead, Jain characterizes 2026 as “Year 1” for Strategy, marking a shift from experimentation to full-scale execution. He links this transition to deeper Bitcoin liquidity, more mature market infrastructure, and growing investor comfort with crypto-backed financial products.
By combining retail access with a permanent capital structure, Strategy is challenging traditional private equity models and showcasing how crypto assets can be integrated into institutional-style investment frameworks. However, uncertainty remains: the company’s potential exclusion from MSCI indexes is still viewed as a key overhang for some investors.