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MicroStrategy, led by Michael Saylor, has become the blueprint for corporate Bitcoin adoption. Their aggressive strategy of using convertible notes and equity offerings to buy Bitcoin has turned a mid-cap software company into a Bitcoin proxy. Here's how it works and what UK businesses can learn.
Timeline of MicroStrategy's Strategy
| Date | Action | BTC Acquired | Average Price |
|---|---|---|---|
| Aug 2020 | Initial purchase | 21,454 BTC | $11,653 |
| Dec 2020 | Convertible note offering | 29,646 BTC | $21,925 |
| 2021-2023 | Continued accumulation | 100,000+ BTC | $30,000-40,000 |
| 2024-2025 | ATM equity + notes | 200,000+ BTC | $50,000-80,000 |
| 2026 (est.) | Ongoing purchases | 400,000+ BTC | Various prices |
The Financing Strategy
- Convertible notes: Borrow at 0-0.75% interest, convert to equity if BTC rises — investors get upside exposure
- ATM equity offerings: Sell shares at market price to fund BTC purchases — dilutive but immediate
- Operating cash flow: Original software business generates ~$500M annually, partially directed to BTC
- Leverage effect: Every $1 of debt buys $1 of BTC, with potential asymmetric upside
Lessons for UK Companies
- 1Start small: MicroStrategy began with excess cash before using debt. UK firms should start with 1-5% of reserves
- 2DCA works: Their average cost has outperformed lump-sum timing for most entry points
- 3Custody is critical: They use Coinbase Custody — institutional-grade security is non-negotiable
- 4Tax implications differ: UK Corporation Tax at 25% on gains differs from US treatment. Plan accordingly
- 5Board alignment essential: Saylor had personal conviction — your board needs unanimous support for volatility
UK-Specific Note: UK companies cannot replicate MicroStrategy's exact financing strategy due to different securities regulations. However, using excess cash reserves and retained earnings for a measured allocation (1-10%) is entirely feasible.
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Sento earns a referral if you click through our links — this never affects our recommendations. Prices and details correct at time of publication. Updated February 2026.