From Nasdaq

May 13, 2025 6:30:00 am:

Bitcoin (CRYPTO: BTC) has seen a price increase of over 9% since January and more than 60% in the past year, making it a strong investment option. There are various ways to invest in Bitcoin without dealing with actual coins, such as through the iShares Bitcoin Trust ETF (NASDAQ: IBIT) and Strategy (NASDAQ: MSTR).

Strategy, formerly MicroStrategy, has seen a significant surge in performance, with shares jumping over 670% since 2023. The company owns 555,450 bitcoins, valued at approximately $57.2 billion, which accounts for a large portion of its $113 billion market cap. Despite its success, Strategy faces risks due to its high premium compared to its Bitcoin assets.

The iShares Bitcoin Trust ETF is a safer and more reliable investment option compared to Strategy, which trades at a significant premium. The ETF tracks Bitcoin’s market price closely, making it a more stable choice for investors. Considering the risks associated with Strategy’s premium, the ETF is a better buy for those looking to invest in Bitcoin.

Investors should carefully consider the risks associated with Strategy’s high premium and constant fundraising through stock and convertible bonds. The company’s reliance on its Bitcoin reserves for fundraising could lead to significant losses if Bitcoin’s price falls and stays down. The iShares Bitcoin Trust ETF remains a safer option for investors seeking exposure to Bitcoin.

The Motley Fool Stock Advisor team has identified the 10 best stocks for investors, and iShares Bitcoin Trust did not make the cut. The recommended stocks have the potential to generate significant returns in the future, making it essential for investors to consider other options. Joining Stock Advisor provides access to the latest top stock picks and opportunities for substantial growth.

Read more at Nasdaq: Better Buy: iShares Bitcoin Trust ETF or Strategy (MicroStrategy)?