From Nasdaq
April 30, 2025 4:08 AM:

Bitcoin has been the top-performing asset for four of the past five years, delivering triple-digit returns in 2020, 2023, and 2024, with a 956% increase in five years. However, Strategy (NASDAQ: MSTR) has outperformed Bitcoin, up 20% in 2025. Investors are now debating which is the better buy.

Strategy has surpassed Bitcoin’s performance over different time periods. Over five years, Strategy is up 2,758% compared to Bitcoin’s 956%. Investors are paying a premium for Strategy stock, valuing the company at roughly $100 billion, double the value of its Bitcoin holdings.

Strategy serves as a Bitcoin proxy stock, with the company holding 538,200 BTC worth $50 billion, making it the largest corporate holder of Bitcoin globally. However, investing in Strategy carries risks, as its success is heavily tied to the price of Bitcoin continually rising.

Investors may be willing to pay a premium for Strategy due to expectations of massive gains in Bitcoin prices and the management skills of Michael Saylor, the company’s founder. However, this high valuation depends on Bitcoin’s price continually increasing and could be unsustainable in the long run.

While Strategy offers exposure to Bitcoin without direct investment, some investors still prefer buying Bitcoin directly. The Motley Fool Stock Advisor team recommends the top 10 stocks to invest in, excluding Strategy. It’s crucial to evaluate the risks and rewards before investing in Strategy or Bitcoin.

Read more at Nasdaq MarketSite: Better Buy: Bitcoin vs. Strategy (MicroStrategy)