Bitcoin Treasuries Are Up 448% Over the Past 2 Years, but Are They a Smart Investment?

Core Insights - Bitcoin treasury companies are gaining popularity, with total Bitcoin holdings of public and private companies increasing nearly 450% since January 2023 [1] Company Analysis - Strategy (NASDAQ: MSTR) is recognized as the pioneer of the Bitcoin treasury model, holding approximately 660,000 Bitcoin on its balance sheet as of December 12 [2] - Strategy claims to provide "amplified exposure to Bitcoin," holding about 3% of the world's total Bitcoin supply, and has delivered a total return of nearly 1,400% since August 2020, compared to Bitcoin's 712% increase [4] - However, in 2025, MSTR has experienced a decline of 38%, while Bitcoin has decreased nearly 3%, indicating significant volatility associated with this amplified exposure [4] Market Landscape - The top 100 publicly traded Bitcoin treasury firms include well-known companies like Tesla and MercadoLibre, as well as popular stocks among retail investors such as MARA Holdings, Riot Platforms, and Cipher Mining, alongside some less reputable penny stocks [5] Investment Considerations - For investors who believe in Bitcoin as a long-term store of value, Strategy is viewed as a leveraged investment opportunity, but it is advised to consider the underlying business's growth prospects and fundamentals rather than solely its Bitcoin holdings [6] - Public and private companies are increasingly adding Bitcoin and other cryptocurrencies to their balance sheets, with Strategy being a notable example of this trend [7]