Would you invest in BTC or MicroStrategy MSTR?

[Vincom]

The launch of a BTC Spot ETF has coincided with a significant rise in BTC price. Some believe the ETF is a major driver behind this surge, with BTC price even reaching a new ATH before the upcoming halving event - a phenomenon never seen before. Adding to the bullish sentiment, Michael Saylor's company, MicroStrategy, continues to aggressively accumulate BTC. They are even engaged in a kind of arms race with BlackRock to hold the most BTC ^{[1, 2]}. Saylor's unwavering commitment to BTC has earned him the reputation of being the most prominent "diamond hands" investor in the crypto world, surpassing even El Salvador's president, Nayib Bukele, in terms of fame.

Michael Saylor has outlined the distinctions between investing in MSTR stock and a BTC Spot ETF ^[3]. While he emphasizes MSTR's advantages, the question remains: for investors, which is better - MSTR, whose value hinges heavily on its BTC holdings, or BTC itself?

• In terms of profit: MicroStrategy's investment in BTC has been highly profitable. Since starting to buy BTC in August 2020, the company's stock (MSTR) has surged over 1220%. This is a significantly higher return than the roughly 500% gain in BTC price itself over the same period. This amplified gain is due to MicroStrategy's use of debt financing to buy more BTC. This strategy, called leverage, magnifies both profits and losses. While it has driven impressive returns so far, it also increases risk if the BTC price falls.
  
  
  
• In terms of credibility: some view MicroStrategy, a well-established company, as a more credible investment than BTC itself. They believe investors gain exposure not just to BTC but also to the experience of MicroStrategy's leadership ^[4]. However, Bitcoin's strength lies in its decentralized nature. Existing for over a decade, it operates independently of any individual, company, or government. This decentralization fosters trust for many investors, myself included, compared to a traditional public company.

While investing in MSTR could potentially offer higher returns, I prioritize self-custodying my BTC for greater control over my holdings. This means I rely on my own judgment, rather than trusting someone else's decisions, even a respected figure like Michael Saylor. Saylor has publicly stated MicroStrategy has no plans to sell its BTC ^[5]. However, I believe it's a question of when, not if, such a sale might occur due to unforeseen circumstances or a strategic shift by the company.

• When will Michael Saylor and MicroStrategy sell BTC?

I would like to know your views on investing in BTC and MSTR:

• Do you choose to invest in BTC or MSTR? Why?
• Will MSTR continue to generate better returns than BTC?
• Is an investment in MSTR safer than an investment in BTC?

References:
[1] BlackRock and MicroStrategy in Neck and Neck Race As Firms’ Bitcoin Holdings Soar to Over $29,170,000,000 in BTC
[2] Public Companies that Own Bitcoin
[3] MicroStrategy Makes Its Case as Alternative to Spot Bitcoin ETFs
[4] Is MicroStrategy (MSTR) A Better Investment Than Bitcoin? Experts Debate
[5] Michael Saylor Suggests MicroStrategy Will Never Sell Its Bitcoin

[tranthidung]

If you want to control your money, your bitcoins, let's invest in Bitcoin. Then store your bitcoins in your own non custodial, open source wallets. Remember to make backups, test backups and store them safely for your wallet recoveries.

If you want to get like double benefits, you can invest in MSTR because their stocks can give you double benefits from their profitable investment in Bitcoin and profit from other products of MicroStrategy.

The warning is, with the second investment option, you will have to trust MicroStrategy and their business. You don't own your money and rely on them.

[mk4]

• Do you choose to invest in BTC or MSTR? Why?
• Will MSTR continue to generate better returns than BTC?
• Is an investment in MSTR safer than an investment in BTC?

1. BTC obviously. Non-custodial, always. There's not a part of MicroStrategy's company that I'd really want.

2. At some point, it won't. Unless MicroStrategy's portfolio of bitcoin companies do extremely well, the attraction of MSTR as some sort of BTC play will slowly die down due to the ETFs.

3. Define "safer".

[Bureau]

Investing in Bitcoin and storing it in a secure wallet is the safest option. The reason is that it is decentralized and is not being controlled by a single entity. MSTR might be able to generate a higher return but it is not decentralized as it is controlled by Microstrategy. When you invest in Bitcoin you get the real product which is Satoshi whereas with MSTR you will only get a paper in return. If you think in the long term investing in Bitcoin will be more profitable than a stock in Bitcoin.

[Poker Player]

I would like to know your views on investing in BTC and MSTR:

• Do you choose to invest in BTC or MSTR? Why?
• Will MSTR continue to generate better returns than BTC?
• Is an investment in MSTR safer than an investment in BTC?

1. In BTC, obviously.
2. Probably, but in downturns the leverage can make it go down more, it is a double-edged sword.
3. No.

That said, I owned shares of MSTR and sold them at a profit. I don't think it is incompatible. If you are going to invest in Bitcoin, the best thing to do is to have most of it in Bitcoin that you hold with your keys. But as a derivative product that provides leverage, I think MSTR shares are a good option.

[Darker45]

From somebody who is a fan of Bitcoin and not really of stocks, I don't even think the two is comparable. If you want to buy MSTR because you truly believe in the future of the company and that you are positive of its growth and development over the years, then buy MSTR. But if you buy MSTR because you are a fan of Saylor preaching about Bitcoin and that MicroStrategy is sufficiently exposed to Bitcoin, then it's all pointless. You better buy Bitcoin for yourself and keep it safe.

For me, Bitcoin is a world safer than MSTR. It only takes one serious problem in at least one of so many points of failure that MicroStrategy has for MSTR to plunge and become worthless. That's not the case with BTC.

As to returns, I think Bitcoin has a much bigger room for long-term price growth than MSTR.

[adaseb]

Yeah you are better off investing directly in either BTC and hold it in self custody or invest in the etf if you want it on your 401K.

MSTR we don’t know how it will perform in the future if there is another bear market or if they decide to start to sell their holdings. They haven’t sold anything yet but who knows. Maybe one day out of the blue they will start to sell their bitcoins. So you are better off being in control and just buying bitcoin directly.

[m2017]

I would like to know your views on investing in BTC and MSTR:

• Do you choose to invest in BTC or MSTR? Why?
• Will MSTR continue to generate better returns than BTC?
• Is an investment in MSTR safer than an investment in BTC?

1. Here on the forum, you will hear only one answer - BTC. Only Investors from the traditional financial sector can invest in MSTR, for whom BTC is something incomprehensible, but on which they want to earn (indirectly) extra money. MSTR provides this opportunity for such cautious investors, but in the eyes of the BTC-community it will forever remain like trash. Choosing MSTR instead of BTC is like choosing a rubber woman instead of a real.
2. This is the same as asking whether the secondary and by-product will be more valuable than the original one. I guess not.
3. Controversial issue. On the one hand, when investing in MSTR, an intermediary appears who can both ruin everything and be an additional guarantor of reliability. I think it’s only because of the second factor that this asset will be in demand.

[blckhawk]

For a small time investor like me that's on the other side of the globe where Microstrategy is, my best choice is just BTC, no other way around it. Plus it's more accessible to other people to buy bitcoin than to buy a stock of MSTR, you just need to download or go to a centralized exchange or a decentralized, whatever you prefer, make it pass the KYC verification (if you're going to use centralized exchange) just do a P2P to buy bitcoin and then you can just hodl, some extra steps are pretty easy to follow too and if you're cautious, you can almost always avoid scammers or hackers that are trying to get your bitcoins.

[pooya87]

Some believe the ETF is a major driver behind this surge,

There are always a number of people who believe in a lot of nonsense like earth being flat

surpassing even El Salvador's president, Nayib Bukele, in terms of fame.

The two aren't comparable though. Bukele sees Bitcoin not just as an investment but as money which is what Bitcoin really is whereas others such as Microstrategy guys see it as a means to make more (dollar) profit. This is why Bitcoin is legal tender in El Salvador not an "investment"...

In terms of profit: MicroStrategy's investment in BTC has been highly profitable. Since starting to buy BTC in August 2020, the company's stock (MSTR) has surged over 1220%. This is a significantly higher return than the roughly 500% gain in BTC price itself over the same period.

If you start looking at it during the pumping period of MSTR that looks good; but if you look at bitcoin price in 2020 that started in $3k range and is currently $70k that is 2200% rise which MSTR rise despite its pump can not even compare to.

It is also not a good thing that the profit here is not coupled with bitcoin profit because it can dump regardless of what bitcoin does too... For example bitcoin could reach a million while MSTR dumps down to zero.

some view MicroStrategy, a well-established company, as a more credible investment than BTC itself.

It is still a centralized company subject to all centralized regulations and consequences. If anyone wants to invest in a centralized company they should do that but they shouldn't even bring bitcoin up or compare it with bitcoin.

In other words regarding your main question, I'd say the question is wrong. You should never choose between the two because they are NOT in the same category.
Make your investment in bitcoin and also on top of that and separately  make your investment in MSTR or whatever stock you like (Apple, Google, ...) as your stock market involvement.

[Die_empty]

I would like to know your views on investing in BTC and MSTR:

• Do you choose to invest in BTC or MSTR? Why?
• Will MSTR continue to generate better returns than BTC?
• Is an investment in MSTR safer than an investment in BTC?

a. The basic step is to learn how to secure my funds and I have no issue with keeping my wallet. MSTR might have a good management who is pro-Bitcoin but humans cannot be totally trusted because they can change. It will be better to invest directly in Bitcoin and have peace of mind than to depend on a third party that can mismanage my money.

b. MSTR shares will always rise and fall with the price of Bitcoin. Although the company might make a profit from investing in other sectors there is no guarantee that it will generate more profit than Bitcoin.

a. Some people claim that they prefer investing in Bitcoin through third parties because they can't keep their keys or protect their wallets. In that case, Investing through MSTR might be safer for them. But I will always prefer to be in absolute control of my coins because third parties cannot be trusted.

[boyptc]

You're in a Bitcoin forum and everyone will say that they'll invest on BTC obviously. But those that are from outside and are fans of traditional investments, they'd choose MSTR or if they're looking at the market, they'd choose BTC too.

Most of us here are more familiar with the move of BTC and that's why it's an easy answer that everyone is going to buy that rather than going with MSTR.

But if you're a diversified investor and you're also optimistic with MSTR, then you choose what you think is right for you as an investor and as part of diversification.

[Mr. Magkaisa]

           -   It's just like this: you have unearthed some gold. Now the question is: will you entrust the gold that was unearthed to other people or would you rather keep it yourself? So this is the logic of what I'm saying: you buy bitcoin, and then do you agree that someone else will hold your bitcoin so that at any time it can no longer be obtained? or are you the one to hide it so that you can take it out of your wallet at any time?

Of course, most investors will invest in bitcoin, not in the microstrategy you say OP. I believe none of the members will be willing to give their trust to the MicroStrategy. Why do you agree with your question?

[Marvell1]

Bitcointalk is a pure bitcoin forum and mostly bitcoin maximalists, so I don't think you'll get a second answer. Even investing in altcoins is frowned upon by many, so investing in stocks or anything other than bitcoin will also be rejected here. And the reason people here will only choose bitcoin is because they want to control and manage their assets themselves. So if you ask them to choose any concentrated asset, you will only get one answer.

[btc78]

I think both could definitely generate profits but it’s not exactly about that. Cryptocurrency and stocks are two different things and have different audiences. Some may even have invested in both. But bitcoin offers a different kind of utility when investing in it compared to stocks. For me right now at this point of my life, bitcoin seems to be the safest option and the most accessible one.

With bitcoin, there’s utility and function but with MSTR, aside from profit I don’t really see any point in investing in it.

[Plaguedeath]

You're in a Bitcoin forum and everyone will say that they'll invest on BTC obviously. But those that are from outside and are fans of traditional investments, they'd choose MSTR or if they're looking at the market, they'd choose BTC too.

Most of us here are more familiar with the move of BTC and that's why it's an easy answer that everyone is going to buy that rather than going with MSTR.

But if you're a diversified investor and you're also optimistic with MSTR, then you choose what you think is right for you as an investor and as part of diversification.

Not really, people know both BTC and stock, stock is nothing new because it's a centralized investment. Since Bitcoin is the only one and people are believing in decentralization, they choose Bitcoin over stock. But some people might diversify their portfolio because they didn't dare to all to Bitcoin.

If you ask people who fans of traditional investment, they will don't have any idea with Bitcoin.

They said it's a bubble, not secure, manipulated, etc, but they can't give any solid or constructive answer why they can say that.

[2Pizza410000BTC]

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I would like to know your views on investing in BTC and MSTR:

• Do you choose to invest in BTC or MSTR? Why?
• Will MSTR continue to generate better returns than BTC?
• Is an investment in MSTR safer than an investment in BTC?

I just want to invest in btc and have invested in btc. I don't want to invest MicroStrategy MSTR and I have no idea about MicroStrategy MSTR. I got a lot of returns from bitcoin investing. I feel that the amount of return that I have received cannot be obtained by investing in unique coins. I have been investing in Bitcoin, Bitcoin seems much safer to me. I have not invested in MicroStrategy MSTR and I have no idea about MicroStrategy MSTR safe.

[Wind_FURY]

OP, when finding an answer for such questions, I believe that, in your example, everyone should start denominating the asset in Bitcoin. Is the asset earning you more Bitcoin, and it will therefore make you hold more units in Bitcoin if you sell the asset? I encourage HODLing, but if people want to "trade", then get the price in Bitcoin. Surging against Bitcoin = Bid, going against Bitcoin = just HODL Bitcoin.

We're here to get as much units in Bitcoin for the limited capital that we have. That's probably why I like Buy the DIP more than DCA. But choose what's more comfortable for YOU, or do both.

[Dunamisx]

Is bitcoin not more better than any form of stock or shares and bond from a centralized institution, they determine what you can make as profits while in bitcoin, you determine what you earn the more you're able to hold longer, there's no how we can compare a centralized investment to bitcoin which is a decentralized one, the difference is clear, in terms of profitability, bitcoin will always have higher edge over them, this same organization are investing on bitcoin as well, so why the long process when bitcoin is for everyone without having to go through a barrier.

[Ptb73]

The answer depends on your goals. If your main goal is to make money and the concept of Bitcoin isn't significant to you, then MSTR is the better choice. However, if you value having full control over your life and funds, then Bitcoin is the preferred option.