Investors have outperformed Bitcoin by investing in Strategy, but direct investment in Bitcoin is recommended.

From Nasdaq

June 22, 2025 5:45 am:

In 2025, Strategy (NASDAQ: MSTR) is up almost 30%, outperforming Bitcoin (CRYPTO: BTC) which is up 11% as of June 19. However, long-term investors may still find it better to invest in Bitcoin directly rather than a Bitcoin treasury company.

Strategy has become the world’s largest corporate holder of Bitcoin after starting to accumulate the cryptocurrency in August 2020. While Strategy’s stock market performance is impressive, the company’s core mission is to accumulate Bitcoin, which presents risks due to the volatility of the cryptocurrency.

Bitcoin treasury companies are using various forms of debt to finance their Bitcoin purchases, which some experts see as a risky strategy. The dependency on increasing Bitcoin value to sustain the business model has led to concerns about the potential for a collapse in the market if companies cannot sustain the Bitcoin loop.

Coinbase Global (NASDAQ: COIN) has issued a warning about the risks posed by the proliferation of Bitcoin treasury companies rushing to buy Bitcoin. The cryptocurrency exchange highlighted the potential for systemic collapse if highly leveraged Bitcoin treasury companies fail, impacting the entire crypto market.

Investors are urged to consider the risks associated with Bitcoin treasury companies and evaluate whether the potential rewards justify the heightened risk. The use of leverage by these companies to outperform Bitcoin may introduce additional risks, leading some to opt for direct investment in Bitcoin rather than Bitcoin treasury companies.

Read more at Nasdaq: Is It Better to Invest in Bitcoin or a Bitcoin Treasury Company?