Strategy vs Bitcoin
Strategy — formerly MicroStrategy — is a listed company whose balance sheet is heavily invested in bitcoin, funded by debt and share issuance. Its price therefore tracks bitcoin, but amplifies its moves in both directions.
Over the period both series share, Bitcoin comes out ahead at +141.0% a year.
| Asset | Total return | Annualised | Volatility | Largest drawdown |
|---|---|---|---|---|
| Strategy | ×17.3 | +19.2% a year | 72.4% | −81.5% (January 2023) |
| Bitcoin | ×1,637,862 | +141.0% a year | 166.1% | −80.1% (December 2011) |
Figures calculated on 26/10/2026 from monthly closing prices. Past performance is no guide to future performance.
A share backed by a digital asset
From 2020 the company converted its cash into bitcoin and kept buying by raising funds — convertible bonds, share placements. Its original software business now accounts for a fraction of what the market values the company at.
The result is a stock whose value depends first on the price of bitcoin, and second on the financial structure that paid for it. That structure adds leverage: it amplifies the rise and the fall alike.
What the share adds, and what it adds in risk
The price has often traded above the value of the bitcoin held. That premium varies, and it can shrink independently of bitcoin itself: the share can fall while bitcoin stands still.
On top of that come the risks of any listed company — debt to refinance, dilution of shareholders, governance — which do not exist for someone holding the asset directly. The matchup measures what that stack has produced, in both directions.
Frequently asked questions
Is it equivalent to holding bitcoin?
No. It is a share, with company risk, debt and a market premium of its own.