In August 2020, Strategy (MSTR +9.39%) made headlines by buying $250 million worth of Bitcoin to hold on its balance sheet. Since that move, shares have climbed 1,170% (as of April 20), outperforming the digital asset and absolutely crushing the S&P 500 index, despite Strategy trading 64% off its peak.

Strategy is now the world’s leading Bitcoin treasury company and essentially a leveraged Bitcoin exchange-traded fund, taking on debt and selling stock to finance more Bitcoin buys. Is that a good thing?

For long-term Bitcoin bulls with high risk tolerance, yes. For most investors, probably not.

Strategy’s strategy is to accumulate more Bitcoin

Strategy’s business model relies on raising capital from various sources (equity, preferred, and fixed-income markets) to accumulate more Bitcoin and add it to the balance sheet. According to research from The Motley Fool, this company is the largest corporate holder of this cryptocurrency in the world. After a $2.5 billion purchase on April 20, Strategy now owns more than 815,000 units of Bitcoin, a bigger position than iShares parent BlackRock, valued at $62 billion at today’s price.

The company’s billionaire co-founder and executive chairman, Michael Saylor, is perhaps the strongest and most visible proponent of Bitcoin in the world. Management’s plan is to raise $84 billion in the “medium-to-long term” to continue running this playbook, including money raised for a prior goal of $42 billion announced in October 2024.

Strategy calls its stock “amplified Bitcoin.” Instead of pushing for higher earnings per share like regular companies, this business prioritizes growing its Bitcoin per share (BPS). This is a novel financial metric that indicates ownership of the cryptocurrency rising over time for investors. BPS surged 74% in 2024 and climbed 23% in 2025. And so far in 2026, it’s up 9.5%.

Strategy

Today’s Change

(9.39%) $15.39

Current Price

$179.36

Investors must be comfortable taking on more risk

There are investors out there who are bullish on Bitcoin, so they buy and hold the top digital asset. There are other investors willing to accept greater uncertainty in order to achieve higher returns. These people will turn to Strategy stock.

The fact that it can be viewed as a leveraged Bitcoin ETF is not necessarily a good or bad thing. It’s the result of financial innovation.

But it’s important to understand that volatility can be extreme. Right now, Strategy shares are 64% below their record. And Bitcoin is 41% off its peak. In the next bull market, investors can expect Strategy to outperform the crypto, as its price swings are more pronounced (to the upside and downside) due to its capital structure.

Investors considering buying Strategy stock must obviously be optimistic about Bitcoin. But it’s also critical that the company continue to raise capital when it needs to. And leadership must operate with rigorous financial discipline and risk management.