Strategy (MSTR) has long been viewed as a proxy for Bitcoin exposure in the traditional finance world. However, recent comments from Bitwise’s Head of Alpha Strategies, Jeff Park, suggest a more nuanced view.
Park described Strategy as “the altcoin of tradfi,” explaining its distinctive volatility and appeal to investors seeking crypto-like returns without direct exposure to Bitcoin ETFs.
Strategy’s Stock
Despite a recent pullback, Strategy’s stock remains up 75% over the past year. Over the last five years, it has surged by an incredible 2,500%, outpacing Bitcoin’s 1,500% gain in the same period, bringing to the fore how Strategy’s stock behaves differently from Bitcoin, exhibiting higher fluctuations more akin to altcoins.
One major reason for this disparity is Strategy’s aggressive Bitcoin acquisition strategy. The firm currently holds over 499,000 BTC, valued at more than $41 billion. Its capital structure also allows for significant leverage, amplifying its market movements in a way that mirrors speculative altcoins.
Park noted that some brokerages still do not permit customers to purchase spot Bitcoin ETFs, driving demand for MSTR as an alternative. This structural demand ensures continued investor interest, particularly from institutions and retail traders looking for Bitcoin exposure within regulated equity markets.
Strategy recently launched an 8% Series A perpetual strike preferred stock, STRK, as part of its ambitious “21/21 plan,” which seeks to raise $42 billion for additional Bitcoin acquisitions. This capital structure seeks to create arbitrage opportunities across its various securities, attracting traders who look to exploit price inefficiencies.
With increasing institutional ownership, Strategy’s stock is becoming a major player in financial markets. Vanguard, BlackRock, and Capital International collectively own tens of millions of shares. Analysts believe that with recent accounting changes allowing unrealized Bitcoin gains to be recognized, Strategy may qualify for S&P 500 inclusion later this year.
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