TLDR:
- Strategy Incorporated (MSTR) has become one of the most popular stocks on Robinhood in 2025, attracting retail investors interested in Bitcoin exposure
- MSTR holds 553,555 bitcoins valued at $52 billion as of April 28, making it the largest corporate holder of Bitcoin
- The stock has outperformed Bitcoin itself, up 36% in 2025 compared to Bitcoin’s 2% (as of May 7)
- The company has an ambitious “42/42 plan” to raise $42 billion in equity and $42 billion in fixed income through 2027
- MSTR’s success has spawned “copycat” companies that focus solely on Bitcoin investment as their business model
Strategy Incorporated (MSTR), formerly known as MicroStrategy, has emerged as one of the most popular stocks on Robinhood in 2025. Retail investors continue to flock to the stock as a way to gain exposure to Bitcoin’s potential upside.
MSTR currently holds 553,555 bitcoins valued at approximately $52 billion as of April 28. This makes it the largest corporate holder of Bitcoin in the world.
The company has been aggressive in its Bitcoin acquisition strategy. In just the first four months of 2025, MSTR purchased an additional 106,085 bitcoins for $9.9 billion at an average price of approximately $93,600.
To fund these massive purchases, the company has raised capital through multiple channels. This includes $6.6 billion through equity offerings, $2 billion through convertible notes, and $1.4 billion through newly listed preferred stock.
The Bitcoin Treasury Model
MSTR pioneered the concept of becoming a “Bitcoin treasury company” back in August 2020. The results have been remarkable for investors who got in early.
Since adopting its Bitcoin strategy in 2020, MSTR stock has appreciated by an astonishing 2,887%. This compares favorably to Bitcoin’s 692% gain and the broader market’s 65% increase during the same period.
Even more impressive is the recent performance gap. While Bitcoin is up just 2% in 2025 (as of May 7), MSTR stock has surged 36% during the same timeframe.
The company’s success has inspired other corporations to follow a similar path. These “MicroStrategy copycats” aim to deliver superior returns compared to holding Bitcoin directly.
The model relies on a metric called Bitcoin per share (BPS). This is calculated as the amount of Bitcoin a company owns divided by the number of outstanding shares on a fully diluted basis.
As long as BPS continues to rise, these companies can potentially deliver value to shareholders. The approach allows corporations to do things with Bitcoin that individual investors cannot, such as using convertible debt to finance new purchases.
Ambitious Expansion Plans
Looking ahead, MSTR has announced an expanded capital plan dubbed the “42/42 plan.” This ambitious strategy targets raising $42 billion in equity and $42 billion in fixed income through 2027.
The company is also focusing on developing credit markets and introducing innovative fixed income securities. Management believes MSTR has the potential to become the world’s first investment-grade Bitcoin treasury company.
MSTR maintains a disciplined leverage ratio between 20% and 30%. This allows for responsible scaling while attempting to maximize long-term value for shareholders.
With $109 billion in equity market cap and approximately $100 billion in equity cushion over fixed income liabilities, the company’s capital structure appears well-fortified according to management.
The persistent interest of retail investors in Bitcoin and cryptocurrencies has made MSTR one of the most popular stocks on Robinhood in 2025. The platform’s users, alongside hedge funds, have shown strong buying interest in the stock.
According to JP Morgan, retail investors bought a record $4.7 billion worth of stocks during the early April market meltdown, the highest level in over a decade. Small-cap technology was one of their favorite sector picks during this correction.
However, potential investors should note the fundamental premise of MSTR’s business model. It relies on the belief that Bitcoin’s price will continue to rise over the long term.
If Bitcoin’s price stagnates or declines, the model could face challenges. Additionally, unlike direct Bitcoin ownership, investors don’t personally own the cryptocurrency when investing in MSTR stock.
As of May 7, 2025, MSTR stock has outperformed both Bitcoin and companies in the S&P 500 index. The company continues to execute its Bitcoin-focused strategy while developing new financial instruments to support its growth.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
