Bitcoin (BTC) is the most valuable cryptocurrency in the world now. Due to its fixed supply and high demand, not everyone can have direct access to this digital currency. Investing in the stocks of MicroStrategy, which is the largest institutional holder of Bitcoin, is another option for those looking to have a stake in Bitcoin.
MSTR and BTC are correlated. The status of one affects the other and vice versa. In this article, you will read about the MSTR vs BTC correlation so that you can understand when and why to invest in either of these.
What is MSTR?
Initially, MicroStrategy was a software company selling business intelligence software. The company is now the largest holder of Bitcoin, and owning the MSTR stocks will give you direct access to Bitcoin. The company holds almost 3% of the total BTC mined to date, making it the largest corporate owner of Bitcoin.
What is BTC?
Bitcoin is the most popular decentralized digital currency for peer-to-peer transactions. It uses blockchain technology for smooth transactions. All the transactions are recorded on blocks. Bitcoin can function as an investment, such as gold, and a transferable entity accepted all over the world. Its formation and existence are an example of technological advancements in the field of computer science.
MSTR vs BTC Chart and MSTR/BTC Ratio
The following table compares MSTR vs BTC, with a comparison of their prices.
| Month and Year | Price of MSTR (USD) | Price of BTC (USD) | MSTR/BTC Ratio |
|---|---|---|---|
| JANUARY 2023 | 270 | 23,000 | 0.0117 |
| JUNE 2025 | 1450 | 66,500 | 0.0218 |
From this table, you can see that the MSTR/BTC ratio has increased over the years. This shows that investors are highly confident in investing in MicroStrategy’s MSTR stock as a way to acquire BTC.
Long-Term Outlook of MSTR Vs BTC Correlation
Over the past years, MSTR has outperformed BTC in terms of its price. This shows that the market is bullish for this stock, and analysts feel that this price trend is going to stay. This is mainly due to the recent price rise of Bitcoin. As MicroStrategy holds a significant number of BTC, BTC’s price rise also results in a rise in MSTR stock values.
As per the analysts, the price prediction for MSTR stocks is $586 in 2025. The market trends signal “Buy” for MSTR stocks.
The table below shows the long-term price prediction of BTC for 2025-2030.
| Year | Price Prediction |
|---|---|
| 2025 | $107,161.47 |
| 2026 | $112,519.54 |
| 2027 | $118,145.52 |
| 2028 | $124,052.79 |
| 2029 | $129,782.65 |
| 2030 | $136,768.20 |
The long-term price prediction of MSTR stocks for 2025-2030 is given below. Here is the expected maximum price for the stock.
| Year | Price Prediction |
|---|---|
| 2025 | $ 464.18 |
| 2026 | $ 493.83 |
| 2027 | $ 1,244.06 |
| 2028 | $ 1,089.79 |
| 2029 | $ 1,179.63 |
| 2030 | $ 871.33 |
Benefits of Investing in BTC
Here are a few factors that make BTC the best investment.
- BTC is a decentralized asset, and owning it helps you leverage the benefits of owning a digital currency.
- With BTC, your transactions will be risk-free because there is no intermediary interference.
- By investing in BTC, you get direct access to the Web 3 landscape and can make use of DeFi.
- BTC investments guard you from the possibilities of inflation that fiat currencies face due to geopolitical tensions, such as war.
Benefits of Investing in MSTR Stocks
Investing in MSTR stocks is a straightforward way to acquire BTC. Here are the benefits of investing in MSTR stocks.
- MSTR stocks give you access to BTC through regulated stock markets.
- Owning stocks increases the likelihood of receiving dividends in the future.
- Stocks can be easily integrated into your retirement portfolio.
- MSTR falls under the regulatory oversight of the SEC. Investors can also enjoy the benefits of this regulatory protection, unlike owning cryptocurrencies.
The Bottom Line
While there is a positive correlation between MSTR and BTC, the correlation coefficient is not stable and varies with the trends. The question of whether to invest in BTC or MSTR varies depending on the general market trends, such as whether the market is bullish or bearish for BTC and MSTR.
While directly owning Bitcoin as well as investing in MSTR stocks have their own benefits, it is your sole priority to choose one. Do your own research of the market and decide the right investment strategy.
Also Read: MicroStrategy (MSTR) Moves Forward with Euro-Pegged STRE IPO — Another Step Toward Bitcoin Expansion