This Tech Stock Is Outpacing Bitcoin—And Could Have Even More Potential

Bitcoin has been one of the most profitable investments in recent years, skyrocketing 600% since August 2020. But what if there was a tech stock that performed three times better?

Meet Strategy (NASDAQ: MSTR)—formerly known as MicroStrategy. While Bitcoin’s rise has been impressive, Strategy has soared over 1,800% in the same period, making it one of the best-performing stocks on the market.

How Strategy Became a Bitcoin Giant

Since 2020, Strategy has outperformed nearly every stock in the S&P 500, including tech powerhouse Nvidia (NASDAQ: NVDA)—which itself has gained an eye-popping 855%.

But Strategy’s secret weapon isn’t software or AI—it’s Bitcoin.

The company has spent the past four years accumulating Bitcoin at an aggressive pace, amassing nearly 500,000 BTC—more than 2% of all Bitcoin in circulation. That’s more than double what the U.S. government holds (around 200,000 BTC), making Strategy the largest corporate Bitcoin holder in the world.

From Software to Bitcoin: A Radical Transformation

Before 2020, Strategy was a traditional enterprise software company. Today, it’s something completely different—a Bitcoin Treasury Company (BTC).

Michael Saylor, the company’s founder and executive chairman, has made it clear: Strategy’s only focus is Bitcoin. To reflect this shift, the company even changed its name from MicroStrategy to Strategy in February 2024.

Its entire brand now revolves around Bitcoin, including a new logo featuring the Bitcoin symbol. And the company isn’t stopping there—it recently announced plans to buy $42 billion worth of Bitcoin over the next three years, using a mix of equity and debt financing.

Is Strategy Taking on Too Much Risk?

While Strategy’s Bitcoin strategy has been profitable, it comes with serious risks. Some investors are worried about the company taking on debt to buy more Bitcoin.

It’s like borrowing money to gamble in a high-stakes game—if Bitcoin’s price rises, Strategy wins big. But if it drops, the company’s stock could take a hit.

And that’s exactly what’s happening right now. Strategy’s stock has fallen nearly 20% in 2024, following Bitcoin’s price drop. Since the company’s value is so closely tied to Bitcoin, any downturn in the crypto market directly affects its stock.

Can Strategy Keep Beating Bitcoin?

Some experts believe Strategy’s stock is overvalued. The company is currently worth $60 billion, but its Bitcoin holdings are valued at only $40 billion.

On top of that, its software business is no longer profitable, meaning its stock price is almost entirely dependent on Bitcoin’s future growth. If Bitcoin keeps climbing, Strategy’s stock could continue to rise—but if Bitcoin crashes, Strategy could lose billions.

Michael Saylor, however, is all in on Bitcoin. He’s even pushing for the U.S. government to buy 25% of all Bitcoin in circulation by 2035, believing this could drive Bitcoin’s price higher and benefit Strategy in the long run.

Should You Buy Strategy or Bitcoin?

There’s no denying that Strategy has delivered incredible returns over the past few years. Its stock has been a powerhouse, proving that a company can leverage Bitcoin’s success for massive gains.

However, Bitcoin remains the safer bet. Unlike Strategy, Bitcoin isn’t tied to a single company’s financial decisions, debt, or stock market volatility.

If you’re looking for a higher-risk, higher-reward opportunity, Strategy might be worth considering. But if you prefer a more stable long-term investment, Bitcoin itself may be the smarter choice.

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