Strategy Crushes Nvidia’s Returns, Will It Last?

Strategy’s Michael Saylor has taken to social media to showcase the company’s outperformance.

Since the adoption of Bitcoin as the treasury reserve asset back in August 2020, the company’s stock is up by nearly 2,500%.

These are known as the returns of the Bitcoin Standard Era (BSE). For comparison, shares of Nvidia (NVDA), which became the most valuable company in the world amid the AI boom, are up by “only” 808%. Bitcoin surged by 614% after Strategy started buying it. E-car giant Tesla (TSLA), which also owns Bitcoin, has gained 155%.

Strategy’s year-to-date returns currently stand at a not-so-impressive 11.4%. Still, it has outperformed the Nasdaq-100, which counters the narrative that MSTR is just a high-beta tech stock. Moreover, its sustained buying helps to prop up the price of Bitcoin, which has held up relatively well amid the global market turbulence caused by the tariff mayhem.

However, Bitcoin’s main “hype man” has no shortage of critics who believe that his “strategy” is a reckless gamble that will eventually fail. Meanwhile, Saylor continues to come up with novel securities in order to secure more funding for buying Bitcoin.

Peter Schiff also facetiously stated that Strategy (formerly MicroStrategy) should update its name to “Micro,” predicting that the stock would collapse alongside Bitcoin.

American entrepreneur Jason Calacanis has argued that Strategy would eventually “break” the Bitcoin game by making BTC more centralized.

The sustainability of MicroStrategy’s Bitcoin bet will depend on Bitcoin’s price performance and the company’s ability to maintain a premium to NAV.

Meanwhile, there are already several ETFs that offer to double the performance of Strategy’s stock for those who want to amp up speculation.