Which Will Yield Bigger Gains: Buying Bitcoin or Bitcoin Treasury Stocks?

Recently, I’ve been looking into the growing trend of companies adding Bitcoin to their treasuries. This shift opens up two main investment options for people like us: buying Bitcoin directly or investing in companies that hold large amounts of Bitcoin. 

While direct investment is simple and straightforward, Bitcoin treasury stocks offer the potential for higher returns, along with significantly higher risk. Here’s what I found through my research.

Bitcoin Investment vs. Bitcoin Treasury Stocks

Let’s start with the basics. Buying Bitcoin directly means you own the asset outright. You control it, benefit directly from price movements, and aren’t affected by any external company decisions. It’s straightforward to manage.

In contrast, Bitcoin treasury stocks are shares of companies that hold Bitcoin as part of their corporate strategy. MicroStrategy, now renamed Strategy, is a prime example. Investing in these companies gives you exposure to Bitcoin, but with added leverage. That leverage can boost returns in bull markets but also increases your exposure to risks, like company performance, leadership decisions, and broader market volatility.

Why Are Companies Stockpiling Bitcoin?

This led me to ask: Why are so many companies doing this?

The reasons vary. Some companies view Bitcoin as a hedge against inflation, while others see it as a strategic way to diversify their treasury. For some firms, especially those with crypto-focused operations like Marathon Digital or CleanSpark, holding Bitcoin is a core part of their business. Others do it primarily to attract crypto-investors or boost shareholder value.

MicroStrategy is a unique case. The company went all-in, buying large amounts of Bitcoin using funds raised specifically for that purpose. It became the first public company to acquire over $250 million in Bitcoin, which has since become central to its identity.

Real-World Performance: Bitcoin vs. Treasury Stocks

Now here’s where the numbers really stood out.

As of May 17, 2025, Bitcoin is trading around $103,482—a yearly increase of about 57.65%.

Strategy (formerly MSTR), on the other hand, is trading at $399.80 and has surged by 152% in the same period. Since adopting the Bitcoin Standard on August 10, 2020, Strategy has seen a return of over 3,358%, compared to Bitcoin’s 1,028% over the same period.

Clearly, treasury stocks like Strategy can outperform Bitcoin during bull markets—but this comes with much higher volatility.

But What’s the Catch?

This brings us to the risks—because they’re not small.

Leverage is a double-edged sword. When Bitcoin drops, these stocks can fall even harder. You also don’t have control. A company can decide to sell its Bitcoin holdings or shift strategies at any time, and that directly impacts your investment.

Many of these companies rely heavily on Bitcoin’s success to stay afloat. For example, Strategy’s core software business has declined by 12% over the last decade. If Bitcoin crashes, these companies could face major financial stress, even bankruptcy in extreme cases.

There’s also the issue of earnings volatility. Public companies must report their crypto holdings each quarter, and that can result in large fluctuations in reported earnings. Add in security risks—like the $1.5 billion Bybit hack in 2025—and it’s clear this isn’t a risk-free option.

Side-by-Side Comparison

Metric	Bitcoin (BTC)	Strategy (MSTR)
5-Year Return	1,028%	3,358%
2025 YTD Return	57.65%	152%
Price (May 2025)	$103,482	$399.80
Volatility	Medium	High
Control	Full	None
Leverage	None	Yes
Risk from Leadership	None	High

So while treasury stocks have the potential for amplified returns, they carry a much heavier risk load than Bitcoin itself.

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Final Thoughts

From everything I’ve looked into, here’s the takeaway.

If you’re looking for simplicity, control, and a straightforward way to benefit from Bitcoin’s long-term growth, buying Bitcoin or a spot ETF is the best option. You avoid business risks, leadership changes, and financial complexity.

But if you’re a high-risk investor aiming for bigger rewards—and you’re confident in the company’s strategy and leadership—Bitcoin treasury stocks could deliver outsized gains.

At the end of the day, it all comes down to your risk tolerance and investment goals. Choose the option that aligns best with how much uncertainty you’re willing to take on.

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