During the five-year period leading up to August 2020, shares of Strategy, formerly known as MicroStrategy, faced a significant decline, dropping by 37%. However, the landscape transformed dramatically after August 11, 2020, when the company shifted its focus to becoming a Bitcoin treasury business. Since that pivot, shares have skyrocketed by 863% as of February 27, outpacing nearly all of the “Magnificent Seven” tech stocks, with only Nvidia surpassing its performance. Despite this impressive gain, it’s important to note that the share price remains 73% below its peak reached in November 2024.
The remarkable turnaround in Strategy’s stock is closely linked to its substantial investment in Bitcoin. Investors considering purchasing shares must have a bullish outlook on Bitcoin, as the company’s success is tightly woven with the cryptocurrency’s price trajectory. If Bitcoin does not rise above the company’s average acquisition cost of $76,000 over the coming years, owning shares in Strategy could yield disappointing returns.
As a leveraged play on Bitcoin, Strategy’s stock exhibits much greater volatility compared to the cryptocurrency itself. Since the company’s transformation, Bitcoin’s price has increased by 483%, while Strategy’s shares have experienced an even larger surge. Nevertheless, the company offers a safety net; even in a highly unlikely scenario where Bitcoin plummets to $8,000, the value of its Bitcoin holdings would be sufficient to cover its net debt.
Additionally, Strategy operates a software division focusing on artificial intelligence analytics. In 2025, this segment generated $477 million in revenue, providing the company with a traditional business model that can generate positive cash flow. This diversification offers a significant advantage over companies wholly focused on Bitcoin, allowing Strategy to maintain interest and dividend obligations more easily.
Current market data reveals that as of February 27, Strategy holds nearly 718,000 Bitcoin units. With the cryptocurrency priced at $64,903, the market value of its Bitcoin assets stands at approximately $46.6 billion. In contrast, the company’s enterprise value is about $57.7 billion, representing a valuation about 1.21 times the worth of its Bitcoin holdings.
Despite recent downturns, including a 46% drop from Bitcoin’s peak price, some investors view this as an opportune moment to acquire Strategy shares. Those with a long investment horizon and a higher tolerance for risk may find that periods of market weakness present the best buying opportunities for Strategy.
