How public companies are funding their Bitcoin treasuries

Hello and welcome to Bitcoin Balance Sheet, the new twice weekly email from Bitcoin Treasuries, where we track the latest in corporate Bitcoin buying.

Each Monday, you'll receive a quick blast on the top buyers over the last week. We'll follow that up every Friday with digest and analysis. Enjoy!

Every BTC on a balance sheet has a story. But the real signal isn’t just in what companies are buying; it’s in how they’re funding those buys.

In today’s market, corporate Bitcoin strategies have matured beyond one-off allocations. We're seeing the rise of engineered capital stacks: multi-layered, asymmetric structures that allow firms to scale exposure without blowing out equity or overleveraging their books.

From convertible notes to preferred shares, the methods are getting sharper, while the incentives become clearer.

What began as a headline play is now a sophisticated game of financial architecture. Strategy has pioneered this shift, using equity instruments with precision to accumulate over 600,000 BTC. Others are following suit. Companies like XXI, Empery, and Semler are adopting the same playbook — adjusting for their size, risk tolerance, and investor base.

Understanding these mechanics is essential. It reveals not just corporate intent, but balance sheet resilience.

This issue breaks down the six most common funding strategies in the corporate Bitcoin space, and unpacks the rationale behind each.

How Do Bitcoin Treasury Companies Fund Their Buys?

1. Equity Offerings

Used by: Strategy, Empery Digital, Semler Scientific, Semantix, etc.

Issuing new shares is the most direct way to raise capital. It's fast, liquid, and well-understood by public markets. But it dilutes existing shareholders and can put pressure on stock price if not well timed.

• Strategy has raised billions this way since 2020.

• Empery Digital sold equity ahead of rebranding and BTC purchases.

• Semler used equity to raise $150 million for further buys.

Pros: Clean, scalable, conviction signaling

Cons: Dilution risk, stock price sensitivity

2. Convertible Notes

Used by: Strategy, Riot Platforms, Iris Energy, etc.

A hybrid between debt and equity. Investors loan money with the option to convert into stock later. Useful for early-stage accumulation while minimizing immediate dilution.

• Strategy relied heavily on convertibles in its early treasury buildout.

• Riot and Iris Energy also tapped this route to scale balance sheets.

Pros: Delayed dilution, lower interest

Cons: Potential future dilution, balance sheet complexity

3. Preferred Stock

Used by: Strategy, possibly others to follow

Offers fixed income to investors without voting rights. Strategy has pioneered this model, creating an entire funding ecosystem through preferred shares.

Jump to detailed breakdown below.

4. Internal Cash Reserves

Used by: Trump Media, Sequans, Semler (initially), Volcon, etc.

Companies with excess cash sometimes buy Bitcoin directly without raising funds. It’s simple but not scalable without strong cash flows.

• Trump Media used reserves for its initial 18,430 BTC buy.

• Sequans and Volcon did the same in early phases.

Pros: No dilution, no debt

Cons: Limited scope, opportunity cost

5. Strategic Capital Partners

Used by: Twenty One (Tether, SoftBank), BSTR (Cantor Fitzgerald), etc.

Private capital from institutional backers brings scale, speed, and brand credibility. Often structured outside public market channels.

• Twenty One enters the public markets with 43,500 BTC.

• BSTR launched with 30,021 BTC and Cantor’s support.

Pros: Deep capital, strategic alignment

Cons: Limited to insiders, complex governance

6. Unsecured Debt Financing

Used by: Rare in DATCOs, more common in mining firms

Traditional loans have high risk in Bitcoin treasury strategies. Unsecured debt is rare and mostly avoided due to BTC price volatility.

Pros: Non-dilutive

Cons: High repayment risk, rare access

Strategy’s Preferred Share Stack (As of August 5, 2025)

Strategy has engineered a multi-tiered preferred share system to fund its Bitcoin accumulation without issuing common stock. Each class targets a different investor profile.

STRC: MicroStrategy Variable Rate Preferred Shares Series A Perpetual Stretch

Current Price: $96.50

Dividend: Variable, paid monthly

Convertible: No

Highlights:

• Raised $2.5 billion in 2025

• Largest IPO in the US this year

• Traded on Nasdaq

• Offers income with flexibility

• Funded 21,000+ BTC purchase

STRK: MicroStrategy Inc Preferred Shares

Current Price: $106.19

Dividend: 8% fixed, convertible into common shares

Convertible: Yes

Highlights:

• Balanced income and upside

• Ranks below STRF, above STRD

• Designed for BTC-aligned growth investors

STRF: MicroStrategy 10.00% Series A Perpetual Strife Preferred Stock

Current Price: $116.00

Dividend: 10% cumulative

Convertible: No

Highlights:

• Highest-ranking preferred

• Appeals to conservative capital

• Prioritized in liquidation scenarios

STRD: MicroStrategy 10% Perpetual Stride Series A Preferred Shares

Current Price: $84.25

Dividend: 10% non-cumulative

Convertible: No

Highlights:

• Junior-most in the stack

• High yield, high flexibility

• Used in aggressive capital moves

This stack lets Strategy fine-tune capital access without diluting control. Each share class fills a different need: flexibility, income, conversion potential, or downside protection.

It’s not just financial engineering — it’s a new blueprint for how Bitcoin-native companies raise capital.

The way a company funds its Bitcoin treasury matters as much as the size of its holdings. Whether it’s Saylor selling preferred shares or Jack Mallers aligning with Tether, capital structure reveals strategy.

These mechanisms will shape how Bitcoin treasuries grow, who controls them, and how sustainable their positions really are.

We’ll continue to track, dissect, and highlight these tools — so you stay ahead of the capital curve in Bitcoin's corporate layer.

Over To You: What Do You Track?

We want to make this the go-to resource for corporate Bitcoin strategy — and that means learning from our readers.

• What metrics or dashboards do you rely on to track the space?

• Which signals would you like us to explore in more depth?

• What tools would you like to see us integrate?

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