What is MSTR Stock: MicroStrategy’s Bitcoin Strategy Explained

What is MSTR stock? In the world of digital assets and traditional finance, this question is gaining traction among both new and seasoned investors. MSTR stock refers to the publicly traded shares of MicroStrategy Incorporated, a business intelligence company that has become a proxy for Bitcoin exposure. This article unpacks what makes MSTR stock unique, how its value is tied to Bitcoin, and why it’s drawing attention from major institutions like the Swiss National Bank. Read on to understand the significance of MSTR stock in today’s evolving financial landscape.

MicroStrategy’s Core Business and Bitcoin Pivot

MicroStrategy (NASDAQ: MSTR) was originally known for its business intelligence, mobile software, and cloud-based services. However, since 2020, the company has made headlines for its aggressive Bitcoin acquisition strategy. Under CEO Michael Saylor, MicroStrategy began purchasing large amounts of Bitcoin, positioning it as the company’s primary treasury reserve asset. As of October 2025, MicroStrategy holds over 640,000 BTC, making it the largest corporate Bitcoin holder globally (Source: Company Reports, October 2025).

This strategic pivot means that what is MSTR stock is no longer just a question about a tech company—it’s about a hybrid entity whose stock price is closely tied to the performance of Bitcoin. Investors buying MSTR stock are, in effect, gaining indirect exposure to Bitcoin’s price movements, without directly holding the cryptocurrency.

Institutional Interest: The Swiss National Bank Example

Institutional adoption is a key trend in the crypto sector, and MicroStrategy’s stock is at the center of this movement. As reported by BitcoinTreasuries and industry news outlets, the Swiss National Bank (SNB) holds approximately $213 million worth of MSTR stock as of June 2024. While the SNB does not directly own Bitcoin, its investment in MicroStrategy provides indirect exposure to the digital asset’s price action.

This approach allows traditional financial institutions to participate in the growth of Bitcoin without navigating the complexities of direct custody or regulatory hurdles. For central banks and large funds, holding MSTR stock can serve as a diversification tool and a potential hedge against inflation, all while remaining within the framework of regulated equity markets.

Such moves signal a subtle but important shift in how traditional finance views digital assets. As more institutions explore indirect exposure through vehicles like MSTR stock, the bridge between crypto and mainstream finance continues to strengthen.

Market Performance and S&P 500 Inclusion Prospects

The performance of MSTR stock is heavily influenced by Bitcoin’s price. For example, in September 2025, MicroStrategy reported a $3.8 billion gain from its Bitcoin holdings, prompting analysts to estimate a 70% chance of MSTR being added to the S&P 500 index after Q3 (Source: Cointelegraph, October 29, 2025). If included, MicroStrategy would become the first company in the index whose core value proposition is directly tied to Bitcoin.

This potential inclusion is significant for several reasons:

• Increased Demand: S&P 500 inclusion would likely drive demand from index funds and ETFs, potentially boosting MSTR’s stock price.
• Market Volatility: Because MSTR is highly correlated with Bitcoin, its addition could introduce new volatility dynamics to the index.
• Legitimacy: It would mark a milestone in the mainstream acceptance of Bitcoin-related assets within traditional financial benchmarks.

Despite its volatility—MSTR stock fell 26% in the three months leading up to October 2025 but remained up 16% year-over-year—the company’s unique position continues to attract both retail and institutional investors.

MicroStrategy’s Bitcoin as Corporate Collateral

Another aspect of what is MSTR stock involves its role as a pioneer in using Bitcoin as corporate collateral. Industry analysts, such as Joe Burnett from Semler Scientific, highlight that MicroStrategy’s Bitcoin holdings—valued at approximately $72 billion—offer global liquidity, rapid settlement, and no counterparty risk. These features make Bitcoin an attractive asset for corporate treasuries and could eventually influence how credit rating agencies assess companies with significant digital asset reserves.

Currently, MicroStrategy holds a B- speculative-grade rating from S&P Global Ratings, similar to companies with much less liquid assets. As the financial world adapts to the realities of digital asset integration, a re-evaluation of such ratings is anticipated, potentially improving borrowing terms and financial stability for companies like MicroStrategy.

Key Takeaways for Investors and the Crypto Market

Understanding what is MSTR stock is essential for anyone interested in the intersection of traditional finance and digital assets. Here are some important points:

• Indirect Bitcoin Exposure: MSTR stock offers a regulated way to gain exposure to Bitcoin’s price movements.
• Institutional Adoption: Major entities like the Swiss National Bank are using MSTR stock to diversify and hedge portfolios.
• Market Impact: MicroStrategy’s strategy is influencing how other companies and institutions view digital assets as part of their treasury management.
• Volatility: MSTR stock is more volatile than traditional equities, reflecting the underlying crypto market’s dynamics.

For those new to crypto investing, platforms like Bitget offer secure and user-friendly ways to explore digital assets and stay informed about market trends. If you’re considering exposure to Bitcoin or related stocks, always conduct thorough research and consider your risk tolerance.

Frequently Asked Questions About MSTR Stock

• What is MSTR stock? MSTR stock represents shares of MicroStrategy Incorporated, a company known for its large Bitcoin holdings and business intelligence services.
• Why does MicroStrategy hold so much Bitcoin? The company views Bitcoin as a superior store of value and a hedge against inflation, making it central to its treasury strategy since 2020.
• How does MSTR stock relate to Bitcoin’s price? MSTR’s stock price is closely tied to Bitcoin’s performance, often moving in tandem with the cryptocurrency’s market trends.
• Is MSTR stock suitable for all investors? Due to its volatility and unique risk profile, MSTR stock may not be suitable for all investors. Always assess your investment goals and risk appetite.
• How can I get started with crypto investing? Explore secure platforms like Bitget for trading, research, and wallet solutions tailored to both beginners and experienced users.

Further Exploration and Practical Insights

As the financial world continues to evolve, what is MSTR stock will remain a key topic for anyone interested in the convergence of crypto and traditional finance. Stay updated with the latest trends, institutional moves, and regulatory developments to make informed decisions. For more practical guides and market insights, explore Bitget’s educational resources and consider opening a Bitget Wallet to securely manage your digital assets.