Investing in Bitcoin: Buying Strategy Stock vs. Buying Bitcoin Directly
Given that it's a currency outside the command of any government or central bank, Bitcoin (CRYPTO: BTC) is inherently an outsider's challenge to the traditional financial system. And Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, is all-in. It calls itself "the world’s first and largest Bitcoin Treasury Company" and says it has "adopted Bitcoin as our primary treasury reserve asset. ... we strategically accumulate Bitcoin and advocate for its role as digital capital."Strategy's extremely ambitious investment approach, which calls for using equity and debt financing as well as cash to buy a lot of Bitcoin, leaves investors with an interesting question: Is it better to simply buy Bitcoin directly, or might the returns from buying the stock be even higher?Here's what you need to know to chart a course.Continue reading
Given that it's a currency outside the command of any government or central bank, Bitcoin (CRYPTO: BTC) is inherently an outsider's challenge to the traditional financial system. And Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, is all-in. It calls itself "the world’s first and largest Bitcoin Treasury Company" and says it has "adopted Bitcoin as our primary treasury reserve asset. ... we strategically accumulate Bitcoin and advocate for its role as digital capital."
Strategy's extremely ambitious investment approach, which calls for using equity and debt financing as well as cash to buy a lot of Bitcoin, leaves investors with an interesting question: Is it better to simply buy Bitcoin directly, or might the returns from buying the stock be even higher?
Here's what you need to know to chart a course.
