MicroStrategy (now Strategy): Can MSTR Be a Bitcoin ETF Alternative?
There’s a strategy to “buy Bitcoin by buying a company.”
At the center of that approach is Strategy Inc (ticker: MSTR),
formerly MicroStrategy.
This post explains why some call MSTR a “corporate Bitcoin ETF,”
and breaks down the rally drivers and investment angles in four parts—with a
U.S. investor lens.
🎯 Key Takeaways
✅ New accounting boosts optics: From 2025, U.S. GAAP allows fair-value accounting for crypto; unrealized BTC gains/losses now flow through earnings.
✅ Income sleeve via STRC: Strategy launched Nasdaq-listed STRC, a variable-rate perpetual preferred with initial 9% annualized monthly payout (later lifted to 10%).
✅ Scale matters: Strategy holds over 600k BTC (the world’s largest corporate stash), so position sizing and BTC beta management are critical.
🔥 Why interest in MSTR surged
MSTR has rallied alongside Bitcoin in 2025 as investors embraced a publicly listed, equity-based way to ride BTC. Because Strategy continues to accumulate coins and employs financing to do it, the stock can behave like a high-beta Bitcoin proxy rather than a traditional software name.
🏢 Business model, rebrand & structure
Originally an enterprise software vendor, the company has repositioned around its Bitcoin treasury strategy and, in August 2025, legally changed its name to Strategy Inc (ticker remains MSTR). The rebrand clarifies its identity as a “Bitcoin treasury company,” even as the legacy software unit persists.
📈 Accounting shift: why reported profits swing
Under FASB’s updated guidance effective for fiscal years beginning after Dec 15, 2024, companies can carry crypto at fair value with changes in net income. For Strategy, that means BTC’s quarter-end price directly moves reported profit/loss—one reason recent quarters flashed big swings.
💰 Capital stack & STRC
Beyond common stock, Strategy has issued multiple preferred series. The STRC variable-rate perpetual preferred launched with a 9% annualized rate paid monthly and management latitude (within limits) to adjust later; early September updates cite a lift to 10%. Availability depends on your broker’s access to Nasdaq-listed preferreds.
💡 Quick glossary
• Fair-value accounting: Measuring assets at current market price on the balance sheet and through earnings.
• STRC: Strategy’s variable-rate perpetual preferred paying monthly dividends (initially 9%).
❓ FAQ
A: An ETF passively holds BTC. MSTR is an operating company that actively acquires BTC using equity, debt, and preferreds—so it adds leverage and corporate-action risk. That’s why some index committees treat it more like a fund-like vehicle than a plain software stock.
Q: What about yield via STRC?
A: STRC targets monthly income (initially 9% annualized; management later moved it to ~10%). Read the prospectus and note rate-adjustment mechanics and call features.
Bottom line: Strategy (MSTR) is no longer “just” a software company—it’s a high-beta, corporate wrapper for Bitcoin exposure. Upside can be outsized in bull runs, but drawdowns can be equally sharp. Size positions accordingly, model BTC beta and funding costs, and don’t confuse it with a regulated ETF.
