Strategy (NASDAQ:MSTR) stock has surged 45% year-to-date in 2025, mirroring Bitcoin’s rise above $120,000. With a shift to Bitcoin investments, Strategy holds 597,000 BTC valued at $65 billion, yielding 13.7% per share. Despite leveraged gains, weak core operations and debt raise risks for Strategy amidst Bitcoin’s volatility and geopolitical factors.

Investors are drawn to Strategy’s rising Bitcoin Yield and favorable BTC price outlook. Institutional interest, ETF inflows, and U.S. administration support boost confidence. However, Strategy’s Operating Income and Cash Flow paint a weak operational picture, with heavy reliance on equity for Bitcoin purchases and debt management. A sudden Bitcoin price drop could strain finances given the company’s leverage and debt load.

While Strategy stock carries risks, the Trefis Reinforced Value (RV) Portfolio offers a strong alternative. The RV mix of large-, mid-, and small-cap stocks outperforms benchmarks, providing responsive market returns and limiting losses during downturns. Explore Trefis’ Market-Beating Portfolios for investment opportunities tailored to market conditions and performance metrics.

Read more at Nasdaq: What’s Happening With Strategy Stock?