In the five years since the transition to #MicroStrategy (now #Strategy , ticker MSTR) to the 'Bitcoin standard' (start - August 10-11, 2020), the company's returns have surpassed not only all major asset classes but also each of the Magnificent 7 (Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, Tesla). This is not a marketing slogan: SEC materials record that the annual return of #MSTR from August 10, 2020, to May 30, 2025, was ~103% per year compared to ~25% for the #Magnificent7 basket, ~12% for #S&P500 , and ~57% for Bitcoin itself.
Saylor publicly reminded on August 22, 2025: 'Five years ago, we adopted the Bitcoin standard. Since then, we have outperformed every asset class and each of the Magnificent 7.' Current comparative charts and data downloads are available on the official Strategy website.
How Saylor's 'machine' operates
1) Treasury policy = BTC as the underlying asset. The 2020 decision to replace excess cash reserves with Bitcoin turned MSTR into a high-beta proxy on BTC with leverage effects through corporate finance.
2) Capital markets as fuel. The company systematically utilized convertible issuances, stock placement programs (ATM), and in 2025 - convertible prefs STRK, directing the raised capital towards additional BTC purchases. This increased the 'operational leverage' to Bitcoin growth (the downside being dilution).
3) Rebranding and KPI around BTC. In February 2025, MicroStrategy publicly established its positioning as a 'Bitcoin Treasury Company' and introduced metrics like BTC Yield and BTC $ Gain, reflecting the growth rate of its Bitcoin position and its monetary contribution.
Why outperforming the Magnificent 7 became possible
Leverage on a megatrend. Bitcoin has provided significantly above-average returns over five years; MSTR has amplified this trend with corporate leverage, which ensured the 'turbo effect' relative to the tech giants. As a result, by spring 2025, MSTR was showing the best annual return 'from the date of the turn' (~103% per year) compared to ~25% for the aggregate basket of the Magnificent 7.
Strategic consistency. Regular purchases and formalization of KPIs around BTC solidified discipline and transparency in the strategy, and inclusion in the Nasdaq-100 (end of 2024) increased the visibility and liquidity of the stocks.
Fact-checking the numbers. According to the company, as of February 3-5, 2025, the balance sheet reflected 471,107 BTC (data from 8-K and press release). This is the best 'anchor' for understanding the scale, although exact levels constantly change due to new purchases.
But the risks are real
Volatility and drawdowns. MSTR has historically experienced sharp declines (for example, -74% in 2022), reflecting both beta to BTC and the effect of leverage/dilution. This is not a 'coupon bond' - it is a high-risk stock with a crypto engine.
Dilution and debt load. Financing through converts, ATMs, and prefs supports the growth of the BTC position but dilutes the share of existing shareholders and adds refinancing risks in stress scenarios.
Correlation with Bitcoin. During bearish phases in the crypto market, MSTR tends to hit harder than BTC itself. Even with long-term superiority, the risk profile remains significantly more aggressive than that of the Magnificent 7 stocks.
What this means for the investor
Pure exposure to BTC? Consider a spot ETF on Bitcoin.
Enhanced exposure to $BTC + corporate leverage? Then MSTR is a 'superbet' instrument: over the long term, it has outperformed even the Magnificent 7, but the price comes with high volatility and corporate risks.
