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MicroStrategy has continued to rewrite the rules of private equity and capital markets, leveraging Bitcoin to achieve what traditional funds have sought, but largely failed to achieve, for more than a decade.
According to Chaitanya Jain, director of Bitcoin strategy at MicroStrategy, the company has been able to address two persistent challenges in private equity.
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MicroStrategy turns Bitcoin into permanent capital, displacing traditional private equity firms
Jin explained that MicroStrategy (now known as Strategy) raised capital directly from individual investors and established permanent and perpetual financing structures.
Jin said sickly His account: Since the last decade, private equity has tried to (1) raise money directly from individuals and (2) build permanent or continuity funds. The strategy achieved both goals. Permanent capital through publicly listed securities on the Nasdaq. Digital shares and digital credit backed by $BTC.
Relying on public securities rather than a closed private capital structure, MicroStrategy provides access to alternative investment products to the general public. At the same time, it created a financing model that does not depend on periodic capital growth.
Jain focuses this approach on two products that he calls “digital stocks” and “digital credit”. Both products are based on Bitcoin, redefining cutting-edge cryptography as institutional-grade security.
Digital stocks allow investors to gain leveraged exposure to Bitcoin via a MicroStrategy capital structure. In contrast, digital credit offers credit facilities backed by BTC.
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The company is activated Its Bitcoin reserve to become a permanent driver of capital It serves as a public version of a private equity fund.
Jain described 2025 as “year zero” for digital credit, a period focused on building, launching and expanding BTC-backed credit products during a fading Bitcoin market.
By 2025, Strategy has raised approximately $21 billion through a combination of common stock issuances, preferred stock offerings (including a historic $2.5 billion perpetual preferred stock issuance described as the largest U.S. IPO by gross proceeds that year) and convertible debt.
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These funds contributed to the implementation of bold purchases of Bitcoin. At the time of writing, Strategy holds 672,497 BTC, acquired at a total cost of approximately $50.4 billion (at an average price of approximately $75,000 per BTC), and with a market value of approximately $61.4 billion (Based on Bitcoin prices near $91,000).
The company uses a significant amount of leverage through debt and preferred equity (in total about $15-16 billion from various sources), creating a highly leveraged exposure to Bitcoin. This explains why analysts say that the company can Igniting the next black wave in the crypto market in 2026.
However, the model has transformed Strategic from a traditional software company into what analysts widely describe as the world’s largest institutional Bitcoin treasury or leveraged investment vehicle for Bitcoin. The company uses permanent capital raising to continue to grow BTC while offering investors different levels of exposure to the company’s performance.
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Jain said 2026 marks MicroStrategy’s “first year,” marking the transition from pilot to full-scale deployment.
The change reflects Bitcoin’s increased liquidity, stronger market structure, and investors’ growing familiarity with crypto-backed financial instruments.
In bridging the gap between retail access and permanent finance, MicroStrategy challenges the traditional rules of private equity and shows how crypto can support sustainable, institutional-quality investment models.
Although the company has entered this new phase, it is still… Possibility to exclude micro-strategies from the MSCI index A major concern.
