How does the business model work?

Strategy still builds and sells AI-powered enterprise analytics software. It generates hundreds of millions in steady annual revenue (about $477 million). Rather than using software profits to buy crypto, MSTR issues corporate debt and sells new batches of common stock to institutional investors. MSTR immediately takes that raised cash and buys spot bitcoin.

Rather than hold spot bitcoin directly, many institutional investors buy MSTR stock instead. This demand often pushes the value of MSTR stock higher than the actual market value of the bitcoin it owns. MSTR uses this premium to continuously dilute its shares, buy more bitcoin and grow its “bitcoin per share” metric.

– Kim Klemballa, head of…