Can Strategy Stock Beat the Market?

Key Points

• In the past decade, Strategy shares have climbed 700%, crushing the S&P 500.

• Investors who buy this stock must be bullish on Bitcoin, as well as management’s ability to operate with proper risk management.

• The upside and downside are amplified, so investors have to handle volatility.

Over the past 10 years, the S&P 500 index has generated a total return of 311% (as of March 3). Despite the stock market’s above-average performance, certain investors just want bigger gains.

Strategy did the job. In the past 10 years, the company co-founded by billionaire Executive Chairman Michael Saylor has seen its share price skyrocket 700%, despite falling 72% from its peak.

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Can this cryptocurrency stock beat the market in the long run?

Image source: Getty Images.

The upside is massive

Ever since Strategy completely altered its business objective to become a Bitcoin (CRYPTO: BTC) treasury company in 2020, it has done a great job of rewarding shareholders, as it now owns $50 billion worth of the crypto. But investors can’t buy this stock without being bullish on Bitcoin.

At a high level, this company raises capital via equity and debt offerings to buy the top digital asset. As part of the 42/42 plan, Strategy’s goal is to raise $42 billion of equity and $42 billion of fixed income. This gives it the firepower to keep accumulating Bitcoin on its balance sheet.

Strategy essentially accesses capital at attractive terms. And it hopes to capture much larger returns from Bitcoin. By giving investors a way to make a levered bet on the price of Bitcoin, Strategy possesses what I believe to be massive long-term upside.

There’s no denying that this stock can outperform the S&P 500. It obviously depends on Bitcoin’s price continuing to appreciate over the next 10 years. Robust capital markets must also be there to provide the critical financing mechanism to keep the flywheel going. And the management team, including Saylor and CEO Phong Le, have to continue operating with proper discipline and risk management to ensure survival, particularly during down markets.

Extreme volatility

In order to achieve what could be fantastic returns, investors need to deal with the volatility, which can be extreme. That’s the psychological price you must be willing to pay.

Since it reached a peak in October 2025, Bitcoin’s price is down 46%. During that same stretch, Strategy shares have tanked 62%. The S&P 500 index is up 1%.

But Strategy gains more on the upside. In 2024, its stock soared 358%, significantly outperforming Bitcoin’s 119% rise.

One thing is certain: Investors shouldn’t even consider adding Strategy to their portfolios if they can’t stomach the inevitable ups and downs. Buying and selling at the wrong times can lead to losses. But if you’re able to buy now and hold for the long term, you’re positioned to beat the market.

Should you buy stock in Strategy right now?

Before you buy stock in Strategy, consider this:

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Neil Patel has positions in Strategy. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.