Why Strategy Makes More Sense as a 10-Year Hold Than a 10-Month Trade

Strategy (NASDAQ: MSTR) is back on a winning streak. Since the start of April, shares of the Bitcoin (CRYPTO: BTC) treasury company have soared 35% (as of April 27). And although they trade an alarming 64% below their record, their incredible 1,260% gain since Aug. 10, 2020 (more on this below) is too difficult to ignore.

With such volatile price swings being a normal occurrence for this innovative business, investors with an itch for speculation will want to trade the stock. That's a losing game, in my opinion. Strategy is best viewed as a 10-year buy-and-hold investment opportunity.

Here are three reasons why.

Image source: The Motley Fool.

Strategy is betting on Bitcoin's rise

In 2025, Strategy generated $477 million in revenue from its enterprise software operations. But this business has now become the leading Bitcoin treasury company, thanks to billionaire founder and Executive Chairman Michael Saylor's firm belief that the top cryptocurrency is the best asset to own. He thinks Bitcoin's price will reach $21 million by 2046, up a jaw-dropping 27,000% from the current price of $76,785.

Bitcoin isn't a short-term trade. Consequently, Strategy can't be viewed this way either.

The dominant digital asset, which has been around for almost two decades, is slowly being adopted as a more popular store of value by individuals, corporations, financial institutions, and governments. It's scarce, neutral, decentralized, and digital.

And it benefits from expanding global liquidity. Just in the last 10 years, the combined M2 money supply of the four biggest central banks has nearly doubled. This is a long-term trend, coinciding with Bitcoin's price rising 17,440%, which isn't going to reverse course.

Financial engineering at its finest

Strategy is not your typical business. It conducts advanced financial engineering to accumulate more Bitcoin to store on its balance sheet. As of April 27, the company owned more than 818,000 Bitcoin units valued at $62.7 billion at the current price. This makes it the largest Bitcoin holder in the world.

Through equity, preferred, and fixed-income markets, Strategy is constantly raising copious amounts of fresh capital. It has recently been using proceeds from stock sales, which happen when shares trade at a premium to the value of Bitcoin holdings, to pay dividends on preferred equity. And proceeds from preferred equity raises go toward buying more Bitcoin.

This is a one-of-a-kind opportunity that investors need to fully understand. But what's impressive is that Saylor and his team have figured out a way to funnel constantly debased fiat currency into Bitcoin. It's a powerful financial machine.

Because of the leverage involved, Strategy gives investors high-beta exposure to Bitcoin's price. The stock experiences greater volatility than the cryptocurrency.

Over the next decade, however, the upside is significant. Look at what happened in the past. Since Strategy first bought Bitcoin on Aug. 10, 2020, its share price has skyrocketed 1,260%, while Bitcoin is up 590%. Assuming this relationship doesn't change, which isn't guaranteed, it means Strategy's price could climb 2,136% in the next 10 years if the digital asset goes up 1,000%.

Anything can happen in the short term

Since hitting a peak in November 2024, Strategy shares have tanked 64%. While not as dramatic, stock prices of even the most successful businesses can fluctuate over any six- or 12-month time frame. For example, Apple's 52-week high is 49% higher than its 52-week low.

This is how markets work. Volatility is normal, as investors all have different perspectives and beliefs that shape their actions and convictions. Market sentiment is always shifting in unpredictable ways.

The smartest investors understand that having a long-term mindset is a non-negotiable behavioral trait. Real wealth isn't built over 10 months. Impactful compounding takes 10 years or more. This is where the money is made.

When it comes to Strategy, it's best to move forward with your attention fixated on the next decade and beyond.

Neil Patel has positions in Strategy. The Motley Fool has positions in and recommends Apple and Bitcoin. The Motley Fool has a disclosure policy.