Michael Saylor’s Bitcoin Strategy Outperforms BTC’s Performance: What’s the Secret?

Jakarta, Pintu News – Michael Saylor, founder and executive chairman of MicroStrategy (now known as Strategy), has made his company one of the largest holders of Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- in the world. As of March 2025, Strategy has 499,096 BTC on its balance sheet, which is equivalent to 2.4% of the total Bitcoin supply that will ever exist.

While Bitcoin has struggled to maintain price momentum, Strategy’s stock has skyrocketed. In the past year, the company’s stock has risen 358.5%, almost three times as much as the price of Bitcoin itself. This begs the question: is Michael Saylor’s investment strategy really more profitable than holding Bitcoin directly?

How to Strategize to Outperform Bitcoin?

1. Buying Bitcoin with Large Leverage

Unlike the typical investor who buys Bitcoin using their own funds, Strategy uses a more aggressive financial strategy. The company not only buys Bitcoin, but also uses debt to continue adding to its holdings.

This strategy allows Strategy to take greater advantage of rising Bitcoin prices, but also increases the risk if BTC prices experience a sharp drop. In other words, Strategy’s stock becomes a sort of highly leveraged Bitcoin ETF.

As of March 14, 2025, Strategy’s Bitcoin holdings were worth around IDR 685.5 trillion ($42 billion), but the company’s market capitalization reached IDR 1,262 trillion ($77.4 billion). When including the company’s debt, the total value reached Rp1,378 trillion ($84.6 billion), almost double the value of their Bitcoin holdings.

Michael Saylor remains confident in this approach, saying:
“We see Bitcoin as the best asset in the world, and we are building our company on that belief.”

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2. Investors Willing to Pay a Premium for Bitcoin Access

Investors seem to prefer buying Strategy shares over Bitcoin directly. One of the main reasons is the ease of access for institutional investors, who may have limitations in buying Bitcoin directly.

In addition, investors also see Strategy shares as a way to gain exposure to Bitcoin with the potential for higher returns. However, this also means that if Bitcoin goes down, the price of Strategy shares could fall even further due to the leverage effect used.

The Risks Behind Saylor’s Strategy

1. High Volatility due to Leverage

While the strategy has been successful so far, there is a huge risk if the price of Bitcoin experiences a sharp drop. Strategy has borrowed billions of dollars to buy more BTC, which means if the price drops drastically, the company could face huge financial pressure.

While the price of Bitcoin has corrected, Strategy’s shares have risen 2.7% since the beginning of 2025. This suggests that the company’s shares are not only trading based on the value of Bitcoin, but also as a speculative asset with a high premium. If this premium disappears, or if the price of Bitcoin falls further, Strategy’s share price could plummet faster than BTC itself.

2. Macro Market Risk and Government Policy

The overall financial market is currently facing great pressure. According to Deutsche Bank, the US stock market is still at risk of further declines, which could have a negative impact on Bitcoin and Strategy.

In addition, economic policy uncertainties, including Federal Reserve decisions and US trade policies, may further affect investor sentiment towards risky assets such as Bitcoin and crypto-related stocks.

Conclusion: Will Saylor’s Strategy Survive?

Michael Saylor has proven that his aggressive approach to Bitcoin can be more profitable than just holding BTC directly. However, this strategy is not without risk. With high leverage and huge exposure to Bitcoin’s volatility, Strategy stocks can experience much more extreme fluctuations than BTC itself.

If the price of Bitcoin continues to rise, Strategy stocks could be one of the highest-yielding investments. However, if BTC experiences a sharp correction, Strategy investors could face an even deeper drop.

For investors who are interested in Bitcoin but want access through the traditional stock market, Strategy could be an option. However, it’s important to understand the risks of leverage and the high premiums that the company’s shares currently carry.

Also Read: Ripple (XRP) Price Surge Predicted After Crypto Wallet Launch in March 2025

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cryptopolitan. Michael Saylor’s Strategy Outperforms Bitcoin. (Accessed March 17, 2025).
• Featured Image: Bitcoin Sistemi