The Hook: A Stock That Moves Like Crypto?
Imagine a stock that behaves more like an altcoin than a traditional company. That’s exactly how Bitwise’s Jeff Park describes MicroStrategy (MSTR)—a company that holds massive amounts of Bitcoin and has become a way for traditional investors to get crypto exposure without directly buying BTC. But why is this important? And how is MicroStrategy shaping the financialization of Bitcoin? Let’s break it down step by step.
1. MicroStrategy: The ‘Bitcoin Proxy’
For years, traders have treated MicroStrategy’s stock (MSTR) as a substitute for Bitcoin because the company holds a massive 499,096 BTC (worth over $41 billion). As Bitcoin’s price surged over the last five years, MSTR stock skyrocketed 2,500%—even more than Bitcoin itself (1,500%).
💡 Key Word: Bitcoin Proxy → MSTR is a stock that moves with Bitcoin’s price because the company holds so much BTC.
However, Park argues that MSTR isn’t just a Bitcoin proxy—it acts more like an altcoin in traditional finance (TradFi) because of its unique volatility and market structure.
2. Why MicroStrategy Trades Differently from Bitcoin
MSTR is highly correlated with Bitcoin, but its price movements are often more extreme. Some days, it moves more than BTC—just like an altcoin does in comparison to Bitcoin!
💡 Key Word: TradFi Altcoin → A stock in traditional finance that behaves like an altcoin due to its wild price swings.
Another reason why MSTR is in high demand: some brokerages still don’t allow investors to buy Bitcoin ETFs (like BlackRock’s or Bitwise’s), but they let them buy MicroStrategy stock.
✅ Why It’s Important: This makes MSTR an alternative gateway to Bitcoin for people who can’t directly buy BTC or a Bitcoin ETF.
3. The ‘Financialization’ of Bitcoin
MicroStrategy isn’t just a stock—it’s part of a bigger financial trend: Bitcoin is becoming a fully integrated financial asset.
To raise capital for more Bitcoin purchases, MicroStrategy is issuing different types of securities, including:
- Convertible bonds (debt that can be turned into shares)
- Preferred equity (a special type of stock with fixed dividends)
💡 Key Word: Financialization → Bitcoin is becoming part of mainstream financial markets through stocks, bonds, and ETFs.
Park highlights that MSTR has become one of the most traded securities in the world—at one point, it even had more daily volume than Nvidia! This shows how much traditional investors are betting on Bitcoin exposure through MicroStrategy.
✅ Why It’s Important: The financial world is now treating Bitcoin as a serious investment asset—not just a speculative gamble.
4. Institutional Money Is Pouring In
Institutions now hold over $34 billion worth of MSTR stock and $37 billion in options (double from last quarter!). Major players like:
- Vanguard (16.3 million shares)
- BlackRock (11.2 million shares)
- Capital International (12.5 million shares)
are all heavily invested in MicroStrategy.
💡 Key Word: Institutional Adoption → Big financial firms are betting on Bitcoin through MSTR, showing growing confidence in crypto’s future.
✅ Why It’s Important: When institutions put billions into something, they aren’t gambling—they’re planning for long-term growth.
5. Could MSTR Join the S&P 500?
MicroStrategy reported a $670.8 million net loss last quarter due to Bitcoin’s volatility, but a new accounting rule now allows unrealized Bitcoin gains to be recognized. This could make MicroStrategy’s financials look stronger, increasing the chances of S&P 500 inclusion—one of the biggest stock indices in the world.
💡 Key Word: S&P 500 Inclusion → If MSTR joins the index, even more big investors will buy it, potentially driving the price up further.
✅ Why It’s Important: If MicroStrategy gets into the S&P 500, it cements Bitcoin’s role in mainstream finance.
Final Takeaway: Why This Matters to You
MicroStrategy isn’t just another company—it’s at the center of Bitcoin’s integration into traditional finance. Understanding MSTR gives you insight into how institutional investors are approaching Bitcoin, which can help you:
- Predict market trends (watching MSTR might hint at Bitcoin’s future moves)
- Find alternative ways to trade Bitcoin exposure (via stocks and options)
- Understand how Bitcoin is becoming a mainstream financial asset
As Bitcoin continues to reshape the financial system, MicroStrategy is proving that crypto isn’t just for retail traders anymore—it’s for Wall Street too.
