Strategy Stock Crushes Bitcoin Over Five Years — But Is It Built to Last?

Bitcoin may be the king of crypto, but there’s a new contender grabbing headlines—and profits. Strategy, formerly MicroStrategy, has somehow outpaced Bitcoin’s meteoric rise, and investors are paying attention.

It’s not every day that a stock beats Bitcoin. In fact, it almost sounds absurd. But here we are in 2025, and Strategy has left Bitcoin in the dust, at least by raw numbers. Is this a fluke? Or is there something deeper going on beneath the ticker?

A Performance Gap That Turned Into a Chasm

Look at almost any recent chart comparing Bitcoin and Strategy, and one thing jumps out—these two moved in sync for years, like twins in a race. That is, until 2024.

The numbers are almost ridiculous. Bitcoin is up around 956% over the past five years. Huge, no doubt. But Strategy? Try 2,758%. That’s nearly triple Bitcoin’s performance. Even in 2025 alone, Strategy’s stock has jumped 20%, while Bitcoin’s hovering or even dipping slightly.

Just one sentence here: That divergence didn’t just appear—it widened fast.

Investors who had once treated Strategy as a mere Bitcoin proxy suddenly saw something else entirely.

From Software Company to Bitcoin Behemoth

Back in 2020, Strategy wasn’t yet the Bitcoin juggernaut we see today. It was a modest enterprise software firm. Then came the shift.

It started with a bold move: Bitcoin on the balance sheet. A few million dollars at first, then billions. Fast forward to today—Strategy owns over 538,000 BTC. At current market prices, that’s worth about $50 billion. For context, that’s more Bitcoin than the U.S. government holds.

And this is where things got weird—in a fascinating way.

The company even changed its name and branding to reflect its new mission. Strategy now calls itself a Bitcoin Treasury Company. Its primary focus? Acquiring and holding Bitcoin. Not software. Not cloud services. Bitcoin.

Strategy became, in essence, a corporate version of a whale.

Three Paths to Bitcoin Exposure

So why would investors choose Strategy over Bitcoin itself? Especially now, with more options than ever?

Here’s what’s on the menu:

• Buy Bitcoin directly through exchanges or wallets.

• Buy a spot Bitcoin ETF—made possible after long-awaited regulatory approval in January 2024.

• Buy Strategy stock, and get exposure with a twist.

The third option—Strategy—is where things start to get spicy.

With ETFs on the table, one might expect proxy stocks like Strategy to lose their appeal. Instead, Strategy surged even higher. The logic? Apparently, investors trust Michael Saylor and his ability to make bold plays more than they trust the ETF structure.

The Premium Puzzle: $50 Billion in Bitcoin, $100 Billion in Valuation

Let’s break it down. Strategy’s market cap now stands at around $100 billion. But its Bitcoin holdings are only worth half that—$50 billion. So what gives?

There are a few ways to read this:

1. Residual software value: Even if Strategy isn’t thriving in software, it still has intellectual property, customers, and some cash flow.

2. Bitcoin’s future price baked in: Investors are betting that Bitcoin will double—or more—soon.

3. Saylor factor: Founder Michael Saylor has become a cult-like figure in Bitcoin circles, known for thinking big and acting bigger.

Here’s the breakdown in table form for clarity:

That’s a lot of confidence built into the share price—and not everyone’s convinced it’ll hold.

Is the Bubble Real or Just the Beginning?

Skeptics have plenty of ammo. For starters, Strategy’s non-Bitcoin business isn’t thriving. It’s been losing money on the software side for years now. Without that income, Bitcoin’s performance has to carry everything.

And it’s not enough for Bitcoin to simply go up.

It has to keep going way up. Triple-digit percentage up. Anything less, and Strategy starts to look…overvalued.

But bullish investors? They don’t seem to care. They’re betting on Bitcoin’s continued climb, Saylor’s vision, and maybe even a little bit of FOMO.

One sentence again: That’s the risky part.

If Bitcoin stalls—or worse, drops—Strategy could unravel fast. The stock is tied tighter to Bitcoin’s fate than ever.

What’s the Smart Money Doing?

Funny enough, Wall Street isn’t shying away. In fact, Strategy’s growing appeal as a public vehicle for Bitcoin exposure is drawing institutional interest. For some funds, buying crypto directly is still off-limits, but stocks? Fair game.

A few things are driving that preference:

• Regulatory clarity on equities vs. crypto.

• Less custody headache—no wallets or cold storage.

• Strategy is liquid, public, and has recognizable leadership.

Still, some analysts are waving caution flags. They worry that Strategy’s stock is chasing hype more than fundamentals. At some point, they argue, investors may demand real performance from its actual business—not just hopes pinned to a volatile asset.

That moment hasn’t arrived yet.