Bankless · Wednesday, July 1, 2026
Jeff Dorman likens MicroStrategy's new approach, following its digital credit capital framework announcement, to that of an actively managed hedge fund. He explains that the company is now dynamically managing all aspects of its capital structure, including debt, equity, and preferreds, to monetize volatility.
“In layman terms, is basically we are now an actively managed hedge fund. We are going to actively, you know, it used to be all we do is sell stock to buy Bitcoin, right? That was a simple story four years ago. Then it was, oh, we sell all kinds of things to buy Bitcoin. We sell preferreds, we sell debt, we sell equity to buy Bitcoin. Then it was, well, sometimes we might have to sell some Bitcoin. And now it's basically everything we can sell or buy, right? So it's like every single part of their cap structure, we may sell or buy.”
“They're basically saying we are now an actively managed hedge fund. And all we're going to do is look at the fact that all four parts of this capital structure are literally at war with each other. And we're going to take advantage of that and try to monetize that volatility that they created for no reason.”