Bitcoin price has experienced a strong rally over the past 16 years, outperforming the stock market and becoming the fifth-largest asset globally, behind gold, Microsoft, NVIDIA, and Apple, with a valuation of $2.1 trillion.
Bitcoin (BTC) has surged over 1,000% in the last five years, while the Dow Jones has climbed 70% and the tech-heavy Nasdaq 100 index has rallied 122% in the same period.
Strategy stock, on the other hand, has outperformed all these assets after transforming its business model from a purely software company to a Bitcoin holding firm. Its stock has soared nearly 3,000%, growing its market cap from $1 billion in 2020 to $101 billion today.
Bitcoin vs Strategy stock vs Dow Jones vs Nasdaq 100 | Source: crypto.news
How the Strategy model works
Investors interested in Bitcoin today have at least three main options. First, they can take the most straightforward route: buying Bitcoin and storing it on exchanges or in self-custody wallets.
Second, they can invest in spot Bitcoin ETFs, which now hold over $131 billion in assets. These ETFs offer direct exposure to Bitcoin but charge a small management fee.
Third, there’s Strategy, which has become the largest corporate holder of Bitcoin with over 580,250 BTC on its balance sheet. Investors place a premium on its model, with its current market cap of $101 billion standing at 1.58x the value of its Bitcoin holdings.
Strategy has acquired 4,020 BTC for ~$427.1 million at ~$106,237 per bitcoin and has achieved BTC Yield of 16.8% YTD 2025. As of 5/25/2025, we hodl 580,250 $BTC acquired for ~$40.61 billion at ~$69,979 per bitcoin. $MSTR $STRK $STRF https://t.co/eAd03GIKam
— Michael Saylor (@saylor) May 26, 2025
Strategy’s approach has been effective because its net asset value (NAV) premium amplifies Bitcoin price increases. A higher share price, in turn, makes it easier for the company to raise funds and accumulate more Bitcoin.
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At the same time, the rising Bitcoin price helps offset share dilution by increasing the firm’s BTC holdings at a faster rate, resulting in higher Bitcoin-per-share for investors.
However, fears of further dilution have raised concerns. The company’s plan to raise $84 billion through share sales has put pressure on its stock. While Bitcoin is trading near its all-time high, Strategy stock is down over 12% from its 2025 peak.
Bitcoin vs Strategy stock: which is a better buy?
Analysts remain bullish on Bitcoin’s long-term outlook. BlackRock predicts BTC could reach $700,000, while Ark Invest sets a more aggressive target of $2.4 million. If either forecast proves accurate, both Bitcoin and Strategy stock would likely deliver strong long-term returns.
At BlackRock’s $700,000 target, Bitcoin would gain about 536% from current levels, giving it a market cap of at least $13.9 trillion.
Assuming Strategy holds 576,230 BTC at that point, its Bitcoin holdings would be worth $403.36 billion. Applying the historical NAV premium of 1.58x suggests Strategy’s market cap could reach over $637 billion.
If Bitcoin’s rally continues and the NAV premium holds, Strategy stock would outperform Bitcoin in relative returns.
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