Bitcoin Treasury Stocks vs. Buying Bitcoin: Which Is the Right Investment Strategy?

Recently, I've been looking into the growing trend of companies adding Bitcoin to their treasuries. This shift opens up two main investment options

Recently, I've been following the interesting development of companies adding Bitcoin to their treasuries. As this trend continues, it presents two main investment avenues for us: buying Bitcoin directly or investing in companies that hold large amounts of Bitcoin, also known as Bitcoin treasury stocks.

While direct investment in Bitcoin is known for its simplicity and straightforward nature, investing in companies like Strategy (formerly MicroStrategy) offers the potential for higher returns, although it also comes with significantly greater risk.

Let's break down the key differences and considerations.

Bitcoin Investment vs. Bitcoin Treasury Stocks

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

Now, let's say you invest in shares of companies that hold Bitcoin as part of their corporate strategy. A well-known example is Strategy, which has been actively investing in Bitcoin since 2020.

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, such as the company's 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, like Invictus (INVI.L), view Bitcoin as a hedge against inflation, which has become a pressing concern for investors. Others, like Huton (HUT.TO), see it as a strategic way to diversify their treasury. For some firms, especially those with crypto-focused operations like Marathon Digital (NASDAQ:MARA) or CleanSpark (NASDAQ:CLSK), holding Bitcoin is a core part of their business. And some companies 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 the company's 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.

Bitcoin vs. Bitcoin Treasury Stocks: A Quick Comparison

Here's a brief overview of the key differences:

| Factor | Bitcoin Investment | Bitcoin Treasury Stocks |

|---|---|---|

| Investment Type | Direct asset ownership (e.g., through an exchange or ETF). | Shares in companies with significant Bitcoin treasury holdings. Examples include Strategy (MSTR), Marathon Digital (MARA), and Micro bitcoin (MBTCF). |

| Risk Level | Lower. Primarily driven by Bitcoin's price volatility. | Higher. Encompasses treasury stocks' price volatility, leadership changes, company performance, and Bitcoin price volatility. |

| Return Potential | Slower, more consistent gains over time, reflecting Bitcoin's price movements. | Potential for faster, larger gains due to leverage and the combined effect of treasury stock price appreciation and Bitcoin value increase. However, also carries the risk of steeper losses. |

| Control Level / Fees Higher. Investors pay trading commissions and exchange fees.

Final Thoughts

If you