MicroStrategy Solves Private Equity’s 2 Biggest Problems With Bitcoin
MicroStrategy continues to rewrite the rules of private equity and capital markets, leveraging Bitcoin to achieve what traditional funds have pursued, and largely failed to do, for over a decade.
According to Chaitanya Jain, MicroStrategy’s Bitcoin Strategy Manager, the company has successfully addressed two persistent challenges in private equity.
MicroStrategy Turns Bitcoin into Perpetual Capital, Outpacing Traditional Private Equity
Jain explains that MicroStrategy (now Strategy) has raised capital directly from retail investors and established permanent, perpetual funding structures.
“Since the last decade, Private Equity has been trying to (i) raise directly from retail and (ii) build continuation or perpetual funds,” Jain said. “Strategy has achieved both. Permanent capital via publicly listed securities on Nasdaq. Digital Equity and Digital Credit backed by $BTC.”
By leveraging publicly listed securities instead of closed-end PE structures, MicroStrategy has effectively democratized access to alternative investment products. At the same time, it has created a funding model that does not rely on cyclical capital raises.
Central to this approach are what Jain calls “Digital Equity” and “Digital Credit.” Both products are backed by Bitcoin, repositioning the pioneer crypto as an institutional-grade collateral.
Digital Equity allows investors to gain leveraged exposure to Bitcoin through MicroStrategy’s capital structure. Meanwhile, Digital Credit provides BTC-backed credit facilities.
In essence, the company has converted its Bitcoin reserves into a perpetual capital engine that functions like a public-equity version of a private equity continuation fund.
Jain describes 2025 as “Year 0” for Digital Credit, a period focused on building, launching, and scaling BTC-backed credit products during a tepid Bitcoin market.
In 2025, Strategy raised approximately $21 billion through a combination of common equity issuances, preferred stock offerings (including a notable $2.5 billion perpetual preferred stock issuance described as the largest US IPO by gross proceeds that year), and convertible debt.
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