Strategy (MSTR -2.08%), formerly known as MicroStrategy, is a company that has undergone a major transformation in the last several years due to its significant focus on and investment in Bitcoin (BTC -0.27%). Prior to its rebranding as Strategy, the company was best known for its business intelligence software and cloud-based solutions, which are still a key part of its revenue model.
MicroStrategy was founded by Michael Saylor and Sanju Bansal, who met as students at the Massachusetts Institute of Technology (MIT). In 1992, the fledgling company gained a major client when it landed a $10 million contract from McDonald's (MCD 1.33%). MicroStrategy went public on the Nasdaq Stock Exchange in 1998.
The company grew rapidly during the dot-com bubble. It later faced a setback when the U.S. Securities and Exchange Commission (SEC) investigated the company over financial reporting inaccuracies. For years, MicroStrategy's performance was less than stellar, with modest sales and a market capitalization of around $1 billion.
Then, in 2020, MicroStrategy began investing in Bitcoin under Saylor's direction. In February 2025, MicroStrategy rebranded to Strategy and adopted Bitcoin as its primary Treasury reserve asset. When the company changed its name, it also introduced a new logo featuring a stylized orange "B" to represent its Bitcoin strategy.
The company now describes itself as the world's largest Bitcoin Treasury company. Despite its focus on Bitcoin, Strategy remains a leading independent provider of business intelligence solutions and artificial intelligence (AI)-powered enterprise analytics software.
If you're interested in investing in Strategy, keep reading. You'll learn about how to buy the stock, its profitability, its dividend history, and more.
Stock
How to buy
How to buy Strategy stock
Investing in Strategy stock isn't difficult because it's a publicly traded company. If you want to invest in Strategy stock, here's how to buy shares.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select the order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
Should I invest in Strategy?
Whether you should invest in Strategy depends on your risk tolerance and your comfort level with indirectly investing in Bitcoin. The company's substantial Bitcoin holdings, which now hover at around $60 billion, have become a defining characteristic.
Strategy primarily leverages debt and equity issuances to purchase and hold Bitcoin as a Treasury reserve. Essentially, it uses its stock as a proxy for Bitcoin exposure. It regularly issues convertible bonds and preferred stock, which investors often have the option to convert into Strategy shares or cash, effectively giving them exposure to the company's Bitcoin holdings.
The company's valuation and stock price are significantly influenced by the price of Bitcoin. From August 2020, when Strategy first launched its aggressive Bitcoin investments, through the first quarter of 2025, shares of the business grew by more than 2,200%, nearly four times the increase in Bitcoin during the same time frame.
While Bitcoin drives much of the share price gains, the core revenue generator is still the company's data analytics and security software. Strategy's revenue from its AI-powered software business is a stable and predictable source of revenue.
Because Strategy has adopted Bitcoin as its primary Treasury reserve asset, it has become one of the largest corporate holders of the cryptocurrency. However, the stock experiences significant volatility due to its dependence on Bitcoin, and it often trades at a premium compared to the underlying value of its Bitcoin holdings.
The company essentially aims to capitalize on the difference between the price at which it raises capital (often at a higher valuation) and the true market value of Bitcoin. Strategy's financial performance is now highly dependent on Bitcoin's price, creating a concentrated risk. A significant decline in Bitcoin's price could lead to amplified losses for Strategy.
The company's core software business has faced challenges through the years, making the Bitcoin investment even more crucial to its overall financial health. Strategy is currently seeing significant increases in its Bitcoin yields and gains, which have exceeded company targets. The company's subscription services revenue has shown impressive year-over-year growth, but overall revenue is still seeing declines.
Profitability
Is Strategy profitable?
Strategy's approach of accumulating Bitcoin has resulted in significant gains, but the company has also faced substantial losses due to Bitcoin's volatility. In Q1 2025, the company reported an unrealized loss of $5.9 billion as Bitcoin's price tanked. Strategy's Q1 net loss was $4.2 billion, or $16.49 per common share on a diluted basis.
Although the company's core operations showed some improvement compared to a $203.7 million operating loss in the first quarter of 2024, the company is still deeply unprofitable.
In Q1 2025, total revenues were $111.1 million, a 3.6% year-over-year decrease. Product licenses and subscription services revenues were $44.4 million, a 23.6% increase year over year. However, product support revenues were $52.5 million, down 16.2% from one year ago.
Dividends
Does Strategy pay a dividend?
No, Strategy does not pay a dividend, nor has management announced plans to initiate one.
ETF options
ETFs with exposure to Strategy
Several exchange-traded funds (ETFs) offer exposure to Strategy. These include:
- The T-Rex 2X Long MSTR Daily Target ETF (MSTU -4.58%), which seeks daily investment results, before fees and expenses, of 200% of Strategy's daily performance.
- The Defiance Daily Target 2x Long MSTR ETF (MSTX -4.63%), which also aims for 2 times Strategy's daily performance. Both of these are leveraged ETFs and aren't well suited for long-term investors.
Exchange-Traded Fund (ETF)
Other ETFs that contain Strategy in their holdings include the Bitwise Crypto Industry Innovators ETF (BITQ -1.75%), the First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT -1.58%), the Valkyrie Balance Sheet Opportunities ETF (NASDAQ:VBB), and the VanEck Digital Transformation ETF (DAPP -1.82%).
Stock splits
Will Strategy stock split?
Strategy stock has split three times since its initial public offering (IPO) in June 1998. The splits were a 2-for-1 split in January 2000, a 1-for-10 reverse split in July 2002, and a 10-for-1 split in August 2024. The last stock split was implemented through a stock dividend on Aug. 1, 2024. Strategy does not have a stock split on the calendar, and management hasn't publicly discussed plans for another one.
Related investing topics
The bottom line on MicroStrategy
Strategy's stock price is highly correlated with Bitcoin's price, meaning investors can gain exposure to potential Bitcoin price increases without directly owning the cryptocurrency. Because Strategy uses debt to fund its Bitcoin purchases, this can amplify gains during Bitcoin bull markets. Conversely, its use of leverage amplifies losses during bear markets.
The company has heavily relied on debt and equity issuances to fund its Bitcoin purchases. Issuing more equity to buy Bitcoin dilutes existing shareholders and can negatively impact the stock price. Strategy holds limited liquid assets other than Bitcoin, which could pose risks if it needs to access cash quickly to meet obligations.
For investors with a high risk tolerance, a small slice of Strategy could be an intriguing -- albeit volatile -- addition to a well-diversified portfolio. But investors who are close to retirement, have an aversion to risk, or do not want even indirect exposure to Bitcoin would do best to search for other investment opportunities.
FAQ
Investing in Strategy FAQ
How can I invest in MSTR?
You can buy shares of Strategy through the brokerage account of your choice by entering Strategy's ticker (MSTR) and the number of shares you want to buy.
Is MSTR a good stock to buy?
For investors who are comfortable with a highly volatile stock of a company that uses debt and equity to fund Bitcoin purchases, Strategy could be intriguing. The company's shares have experienced big gains recently as the price of Bitcoin has soared, but Strategy's underlying business is unprofitable. Overall revenue is declining despite the growth of its core software business.
Where can I buy Strategy stock?
You can buy shares of Strategy stock if you have an open and funded brokerage account. The stock trades on the Nasdaq exchange.
What is the ticker for MicroStrategy?
The ticker for Strategy, formerly known as MicroStrategy, is MSTR.
