Do you like to walk on the wild side? Are you bullish on Bitcoin (CRYPTO:BTC)? If so, then you might consider a share position in Strategy (NASDAQ:MSTR | MSTR Price Prediction), formerly known as Microstrategy.
As you may be aware, Michael Saylor is Strategy’s founder and executive chairman and previously served as the company’s CEO. Saylor is an outspoken champion of Bitcoin who boldly suggested that Bitcoin could reach $21 million by 2046.
Saylor effectively transformed Strategy from a software developer into a massive Bitcoin treasury. It was an audacious move that could benefit the company’s investors. Yet, after a difficult year for Strategy’s shareholders, the path forward isn’t crystal-clear for 2026.
Magnified Price Moves
Give or take a few dollars, Strategy stock started 2025 at around $300 and ended the year near $300. Meanwhile, Bitcoin began 2025 at roughly $97,000 and finished the year at approximately $90,000.
Percentage-wise, MSTR stock declined by nearly 50% last year even though Bitcoin only fell 7% or 8%. This just goes to show that Strategy stock doesn’t have a one-to-one price-change correlation to Bitcoin.
I like to make the analogy that MSTR stock is to Bitcoin as a gold mining stock is to gold. Since Strategy stock is much lower priced than Bitcoin, traders should expect magnified price moves in both directions.
Remember: Saylor’s $21 million Bitcoin prediction is for 2046, which is still 20 years away. The Strategy founder didn’t claim that every year would be profitable.
Going forward, it’s wise to prepare for volatility and keep your MSTR stock position small. Note that Strategy stock has a five-year monthly beta of 3.43, indicating that the stock has historically moved 3.43 times as fast (in both directions) as the S&P 500.
The point here is that MSTR isn’t a stock to play around with. It’s like a powder keg that could explode higher or blow up in your face, so please proceed with caution.
Don’t Obsess Over Financials
It’s generally a good idea to be aware of a business’s financials if you’re an investor. However, now that Strategy is primarily a Bitcoin treasury, conventional financials might not be very meaningful in 2026.
For example, Strategy’s total revenue amounted to $128.691 million in 2025’s third quarter, versus $114.488 million in the prior quarter and $116.071 million in the year-earlier quarter. From those figures, you might conclude that Strategy’s revenue is fairly steady and recently growing.
That’s all well and good, but Strategy’s reported revenue stats might not mean much in 2026. After all, those revenue totals only reflect Strategy’s sales in the areas of product licenses, subscription services, and so on.
Nowadays, Saylor’s and Strategy’s main business model is to aggressively hoard Bitcoin. Strategy’s reported quarterly revenue, and therefore the company’s reported income, reflect non-core businesses.
That’s why I’m not obsessing about Strategy’s price-to-earnings (P/E) ratio and other old-school valuation metrics. The company’s unrealized gains or losses from Bitcoin holdings are much more significant than Strategy’s relatively minor legacy business ventures.
The Ultimate “HODL”
By all indications, Saylor adheres to the commonly cited cryptocurrency investment strategy known as “HODL.” This is an acronym that stands for “Hold On for Dear Life,” suggesting that investors should continue to hold their crypto despite the price volatility.
As a staunch “HODL-er,” Saylor seems to practice what he preaches. In a recent X (formerly Twitter) posting, Saylor disclosed that Strategy “has acquired” 13,627 BTC for around $1.25 billion at approximately $91,519 per Bitcoin.
The Strategy CEO added that, as of January 11, 2026, “we hodl” 687,410 BTC “acquired for” around $51.80 billion at roughly $75,353 per Bitcoin. If that’s accurate, then Saylor’s HODL strategy has worked out well, so far.
You must admit, 687,410 BTC is a colossal Bitcoin hoard. Saylor is practically the world’s ambassador of Bitcoin at this point. Consequently, investors should expect Strategy to continue buying Bitcoin throughout the coming year.
Keep Your Eyes on Bitcoin
The price action from 2025 demonstrated that Strategy stock is susceptible to severe drawdowns. This can occur even if Strategy’s reported revenue is stable and growing.
This year, you’ll definitely want to monitor the Bitcoin price closely. Pay particular attention to news items that may affect cryptocurrency prices.
If Bitcoin shoots far above $100,000, then MSTR stock has a shot at surpassing $200 this year. Yet, Bitcoin could also collapse and take Strategy stock down with it. Thus, as always, be ready for all outcomes and limit your position size in fast-moving Bitcoin-associated assets.
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