MicroStrategy Solves Private Equity’s 2 Biggest Problems With Bitcoin
MicroStrategy continues to rewrite the principles of personal fairness and capital markets, leveraging Bitcoin to attain what conventional funds have pursued, and largely did not do, for over a decade.
According to Chaitanya Jain, MicroStrategy’s Bitcoin Strategy Manager, the corporate has efficiently addressed two persistent challenges in personal fairness.
MicroStrategy Turns Bitcoin into Perpetual Capital, Outpacing Traditional Private Equity
Jain explains that MicroStrategy (now Strategy) has raised capital immediately from retail traders and established everlasting, perpetual funding constructions.
“Since the final decade, Private Equity has been attempting to (i) elevate immediately from retail and (ii) construct continuation or perpetual funds,” Jain said. “Strategy has achieved each. Permanent capital through publicly listed securities on Nasdaq. Digital Equity and Digital Credit backed by $BTC.”
By leveraging publicly listed securities as an alternative of closed-end PE constructions, MicroStrategy has successfully democratized entry to various funding merchandise. At the identical time, it has created a funding mannequin that doesn’t depend on cyclical capital raises.
Central to this method are what Jain calls “Digital Equity” and “Digital Credit.” Both merchandise are backed by Bitcoin, repositioning the pioneer crypto as an institutional-grade collateral.
Digital Equity permits traders to achieve leveraged publicity to Bitcoin by way of MicroStrategy’s capital construction. Meanwhile, Digital Credit supplies BTC-backed credit score amenities.
In essence, the corporate has converted its Bitcoin reserves into a perpetual capital engine that capabilities like a public-equity model of a non-public fairness continuation fund.
Jain describes 2025 as “Year 0” for Digital Credit, a interval targeted on constructing, launching, and scaling BTC-backed credit score merchandise throughout a tepid Bitcoin market.
In 2025, Strategy raised roughly $21 billion by way of a mix of frequent fairness issuances, most well-liked inventory choices (together with a notable $2.5 billion perpetual most well-liked inventory issuance described as the biggest US IPO by gross proceeds that 12 months), and convertible debt.
These funds supported aggressive Bitcoin acquisitions. As of this writing, Strategy holds 672,497 BTC, acquired at a complete value of roughly $50.4 billion (with a median value of round $75,000 per BTC), and has a market worth of roughly $61.4 billion (based on Bitcoin prices near $91,000).
The firm employs vital leverage by way of debt and most well-liked inventory (totaling roughly $15–16 billion throughout varied sources), making a extremely leveraged publicity to Bitcoin. This explains why analysts say the agency may (*2*).
Nonetheless, the mannequin has reworked Strategy from a standard software program firm into what analysts broadly describe because the world’s largest company Bitcoin treasury firm or a leveraged Bitcoin funding car. It makes use of perpetual capital raises to constantly accumulate BTC whereas providing traders various levels of publicity to its efficiency.
According to Jain, 2026 marks “Year 1” for MicroStrategy, signaling a transition from experimentation to full-scale deployment.
The shift displays rising Bitcoin liquidity, a stronger market infrastructure, and growing investor familiarity with crypto-backed monetary devices.
By bridging the hole between retail entry and everlasting funding, MicroStrategy is difficult the personal fairness orthodoxy and demonstrating how crypto can underpin sustainable, institutional-grade funding fashions.
Nevertheless, even because the agency enters this subsequent part, MicroStrategy’s potential MSCI exclusion stays an overhanging concern.
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