Critics argue that the valuation premiums enjoyed by digital asset treasury companies like Strategy may not be sustainable long-term, especially as market dynamics evolve and competition increases.

Strategy, formerly known as MicroStrategy, has adopted a high-risk, high-reward approach by raising capital cheaply from investors and deploying it to buy Bitcoin, which has significantly outperformed traditional investments.

Over the past five years, Strategy has been one of the best-performing stocks, with an impressive increase of 1,894% and an annualized CAGR of 81.4%, driven largely by its aggressive Bitcoin accumulation strategy.

Since August 2020, Strategy shifted its focus from its core enterprise software business to accumulating Bitcoin, now holding 640,031 BTC worth nearly $80 billion, making it the largest corporate holder of Bitcoin globally.

This strategic pivot has been a key factor behind its remarkable stock performance, which has contributed to a market valuation close to $95 billion, nearly matching the value of its Bitcoin holdings.

Despite recent volatility, with the stock dropping 5.05% to €263.20, investor sentiment remains bullish, with a target price of €498 indicating an 89.21% potential upside.

However, since mid-2025, Strategy's stock has only increased by 13%, lagging behind Bitcoin's 30% rise, prompting some investors to question whether buying Bitcoin directly might be a better long-term strategy.

Many experts suggest that over the long term, no company can outperform Bitcoin itself, and for most investors, buying Bitcoin directly could be a more reliable and less risky option.

While the company's strategy has yielded impressive returns, it also involves significant risk, especially as raising new capital becomes more challenging amid rising Bitcoin prices and increasing competition among Bitcoin treasury companies.

If Strategy maintains its historical growth rate, a modest investment could potentially grow to nearly $1 million in ten years, highlighting the life-changing potential of its Bitcoin-focused approach.

Overall, the market's valuation reflects strong investor confidence, but the diminishing premium over Bitcoin's value raises questions about the sustainability of Strategy's Bitcoin treasury model.