Strategy Inc's Bitcoin Holding: Why Buying the ETF May Not Be the Best Option
ByAinvest
Wednesday, Oct 8, 2025 10:33 am ET2min read
MSTR--
Strategy Inc.'s Bitcoin Holdings and Market Performance
Strategy Inc. (formerly MicroStrategy) holds approximately 640,000 bitcoins, valued at around $80 billion as of September 30, 2025 [1]. The company's digital asset holdings were valued at $73.21 billion as of the same date, with a third-quarter fair value gain of $3.9 billion [1]. This significant unrealized gain is one of the largest in the company's history, driven by Bitcoin's strong performance in Q3 2025 [1].
MSTR shares have more than doubled in the past year (+106% YoY), trading in the mid-$350s in early October 2025 [2]. The stock spiked about 5-6% in a single day after news that unrealized crypto gains won't count toward a new corporate tax, far outpacing the broader market's rise [2]. High trading volumes and daily swings of several percent have become common as the stock closely shadows Bitcoin's volatility [2].
Bitcoin Exposure vs. Direct Investment
Investing in MSTR offers indirect exposure to Bitcoin. The company's Bitcoin holdings are a significant portion of its total assets, making its stock price highly correlated with Bitcoin's price movements. For instance, when Bitcoin reached record highs in early October 2025, MSTR shares also experienced a significant increase [2].
However, there are several factors to consider when comparing MSTR to direct Bitcoin investment:
1. Premium: MSTR trades at a premium of around 1.50X compared to the direct cost of Bitcoin. This means that investors are paying a higher price for Bitcoin exposure through MSTR than they would if they bought Bitcoin directly.
2. Risk: MSTR's stock price is subject to the same market volatility as Bitcoin, but it also carries additional risks, such as the company's debt load and its ability to execute its Bitcoin strategy.
3. Liquidity: MSTR shares are more liquid than Bitcoin, making it easier for investors to buy and sell their positions.
4. Tax Implications: The tax treatment of Bitcoin held by MSTR may differ from Bitcoin held directly by investors, potentially impacting after-tax returns.
Conclusion
Investing in Strategy Inc. (MSTR) can be an efficient way to gain exposure to Bitcoin, especially for investors seeking a more liquid and diversified investment. However, the premium price and additional risks associated with MSTR should be carefully considered. Investors should weigh these factors against their risk tolerance and investment goals before making a decision.
References
[1] https://www.cryptopolitan.com/strategy-ranks-top-five-in-us/
[2] https://ts2.tech/en/bitcoin-bonanza-strategy-inc-mstr-rides-record-crypto-wave-to-soaring-profits-stock-surge/
BTC--
Strategy Inc (MSTR) is a company that holds $100 worth of Bitcoin (BTC-USD) and currently trades for around $150, a premium of 1.50X. With Bitcoin reaching new all-time highs, the question arises whether investors should buy into the company to gain exposure to Bitcoin. The article suggests that buying into MSTR may be a more efficient way to gain exposure to Bitcoin rather than buying Bitcoin directly.
As Bitcoin (BTC-USD) continues to reach new all-time highs, investors are exploring various avenues to gain exposure to the cryptocurrency. One such option is investing in Strategy Inc. (MSTR), a company that holds a substantial amount of Bitcoin and trades at a premium. This article explores whether investing in MSTR could be a more efficient way to gain Bitcoin exposure compared to buying Bitcoin directly.Strategy Inc.'s Bitcoin Holdings and Market Performance
Strategy Inc. (formerly MicroStrategy) holds approximately 640,000 bitcoins, valued at around $80 billion as of September 30, 2025 [1]. The company's digital asset holdings were valued at $73.21 billion as of the same date, with a third-quarter fair value gain of $3.9 billion [1]. This significant unrealized gain is one of the largest in the company's history, driven by Bitcoin's strong performance in Q3 2025 [1].
MSTR shares have more than doubled in the past year (+106% YoY), trading in the mid-$350s in early October 2025 [2]. The stock spiked about 5-6% in a single day after news that unrealized crypto gains won't count toward a new corporate tax, far outpacing the broader market's rise [2]. High trading volumes and daily swings of several percent have become common as the stock closely shadows Bitcoin's volatility [2].
Bitcoin Exposure vs. Direct Investment
Investing in MSTR offers indirect exposure to Bitcoin. The company's Bitcoin holdings are a significant portion of its total assets, making its stock price highly correlated with Bitcoin's price movements. For instance, when Bitcoin reached record highs in early October 2025, MSTR shares also experienced a significant increase [2].
However, there are several factors to consider when comparing MSTR to direct Bitcoin investment:
1. Premium: MSTR trades at a premium of around 1.50X compared to the direct cost of Bitcoin. This means that investors are paying a higher price for Bitcoin exposure through MSTR than they would if they bought Bitcoin directly.
2. Risk: MSTR's stock price is subject to the same market volatility as Bitcoin, but it also carries additional risks, such as the company's debt load and its ability to execute its Bitcoin strategy.
3. Liquidity: MSTR shares are more liquid than Bitcoin, making it easier for investors to buy and sell their positions.
4. Tax Implications: The tax treatment of Bitcoin held by MSTR may differ from Bitcoin held directly by investors, potentially impacting after-tax returns.
Conclusion
Investing in Strategy Inc. (MSTR) can be an efficient way to gain exposure to Bitcoin, especially for investors seeking a more liquid and diversified investment. However, the premium price and additional risks associated with MSTR should be carefully considered. Investors should weigh these factors against their risk tolerance and investment goals before making a decision.
References
[1] https://www.cryptopolitan.com/strategy-ranks-top-five-in-us/
[2] https://ts2.tech/en/bitcoin-bonanza-strategy-inc-mstr-rides-record-crypto-wave-to-soaring-profits-stock-surge/
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