Strategy Eyes Global Credit Expansion as Bitcoin Treasury Evolves

Michael Saylor’s Bitcoin treasury company, Strategy (MSTR), is no longer content with dominating just the corporate Bitcoin space. 

During the company’s third-quarter earnings call, President and CEO Phong Le revealed that Strategy is laying the groundwork for credit securities in international jurisdictions, setting its sights on becoming a global credit issuer.

“We are actively laying the groundwork for credit securities in international jurisdictions, positioning Strategy to become a dominant credit issuer globally,” Le said on Thursday, signaling the company’s intent to expand beyond U.S. borders and into the broader digital credit market.

The move represents a natural evolution for the firm, which has already pioneered the use of Bitcoin as a corporate reserve asset. By expanding into credit markets, Strategy aims to leverage its massive Bitcoin holdings to support digital asset-based credit instruments—a market that remains largely untapped at the corporate level.

Financial Turnaround Strengthens Expansion Plans

Strategy’s global credit ambitions come at a time of extraordinary financial recovery. The company reported operating income of $3.9 billion and net income of $2.9 billion for the third quarter, a sharp reversal from losses of $432.6 million and $340.2 million, respectively, in the same period last year.

Earnings per share rose dramatically to $8.42, up from $1.72 in Q3 2024. For the first nine months of 2025, operating income reached $12 billion—a leap from a $0.8 billion loss the year before—while net income climbed to $8.6 billion compared to a $0.5 billion loss. Earnings per share surged to $27.71, up from a negative $2.71 a year earlier.

The turnaround shows Strategy’s growing financial efficiency and its ability to convert its Bitcoin-centric balance sheet into sustained profitability. It also provides the company with the foundation it needs to pursue more complex credit ventures globally.

Managing Debt While Expanding Horizons

While Strategy continues to expand its financial footprint, the company remains mindful of its existing obligations. It reported $689 million in annual dividend and interest payments, driven largely by its preferred share programs—$522 million from cumulative preferreds and $125 million from non-cumulative series.

Its convertible bonds total $8.2 billion in notional value, with a modest 0.421% blended interest rate, translating to roughly $35 million in annual interest payments. Notably, 39% of this debt is already in the money, while the 2029 and 2030 zero-coupon tranches remain out of the money until their 2028 put dates. Collectively, these notes carry a market value of $10.6 billion.

Phong Le reaffirmed the company’s goal to eliminate all convertible debt by 2029, a target also recognized by S&P, which assigned Strategy a B- credit rating.

Saylor’s View: Maturing Market, Expanding Value

Executive Chairman Michael Saylor offered a broader perspective on the company’s valuation, noting that Strategy’s multiple to net asset value (mNAV) has fallen to about 1.25, its weakest level since early 2024. Saylor attributed the compression to the maturing Bitcoin market, where volatility has eased due to the rise of derivative products and the success of institutional ETFs like BlackRock’s IBIT.

Despite this, Saylor remains optimistic, suggesting that Strategy’s digital credit expansion and preferred-equity issuances could lift mNAV over time. In his view, the company’s next growth phase will hinge less on Bitcoin’s price swings and more on how effectively it can capitalize on the intersection of digital assets and credit markets.

Raising Capital and Avoiding Tax Friction

Strategy’s financing machine remains highly active. The company has raised $20 billion year-to-date across a mix of common stock, perpetual preferreds, and convertible debt, nearly matching the $22.6 billion it raised throughout 2024.

On the regulatory side, Strategy clarified that under U.S. Treasury and IRS interim guidance issued Sept. 30, it does not expect to face the Corporate Alternative Minimum Tax (CAMT) on unrealized Bitcoin gains—a relief that could help sustain profitability amid its ongoing issuance efforts.

Toward the S&P 500 and Beyond

For the second consecutive quarter, Strategy has qualified for potential inclusion in the S&P 500 index, reflecting its growing financial stature and expanding investor appeal. The company’s shares rose over 5% following the Q3 earnings release, reaching $269.51 per share.

MSTR price (Source: Google Finance)

This milestone represents not only the firm’s financial recovery but also its successful repositioning from a single-asset Bitcoin holder to a diversified, yield-oriented digital finance company with global aspirations.

Strategy’s Evolution Is Just Beginning

Strategy’s journey from Bitcoin treasury pioneer to global digital credit powerhouse marks one of the most ambitious transformations in the corporate digital asset space. 

With a strong earnings base, a clear debt management plan, and Saylor’s long-term vision, Strategy is poised to become a cornerstone of the emerging digital credit economy—one built not just on Bitcoin, but on the promise of blockchain-enabled capital markets.