Should you invest in Strategy?
Investing in Strategy largely comes down to your tolerance for Bitcoin-driven volatility. The company now holds roughly $60 billion worth of Bitcoin, making its stock closely tied to the cryptocurrency’s price.
Strategy effectively uses its shares and debt to gain Bitcoin exposure, regularly issuing convertible bonds and preferred stock to fund purchases. As a result, the stock often acts as a leveraged proxy for Bitcoin rather than a traditional software company.
Since Strategy began buying Bitcoin in 2020, its shares have surged more than 2,200% through early 2025 -- far outpacing Bitcoin itself. But that upside comes with risk. The stock can swing sharply with Bitcoin and often trades at a premium to the value of its underlying holdings.
While Bitcoin now dominates the investment story, Strategy still generates steady revenue from its data analytics and AI-powered software business. That said, overall revenue has been uneven, and the company’s financial performance is increasingly dependent on Bitcoin’s price.
For investors comfortable with concentrated crypto risk, and the potential for amplified gains and losses, Strategy may be worth considering. For more conservative investors, the volatility may be hard to stomach.