Don't Buy Strategy Stock When You Can Just Buy Bitcoin

Strategy (NASDAQ: MSTR) and Bitcoin (CRYPTO: BTC) are both down this year, with year-to-date losses of 38% for MSTR and 29% for BTC. The article argues that if investors must choose, Bitcoin is the stronger opportunity because Strategy is essentially a leveraged bet on Bitcoin rather than a durable, standalone business. Strategy’s model relies on borrowing, equity dilution, and repeated Bitcoin sales to meet obligations. It notes Strategy’s Bitcoin yield fell from 9.4% in Q1 to 4.5% and that it sold 3,588 Bitcoins to fund dividends for its digital credit securities. With $3.75 billion cash and $6.7 billion debt, the company may face further pressure in a bearish cycle.