Strategy Inc vs. BlackRock: Which is the better Bitcoin proxy stock for your portfolio?

Bitcoin proxy stocks for investors in 2025: Strategy Inc vs. BlackRock, compared

When investors want exposure to Bitcoin without actually holding it, they often turn to what’s known as a Bitcoin proxy stock. These are equities or funds that mirror Bitcoin’s price movements, offering a way into the crypto market through traditional finance.

Two of the most prominent examples today are Strategy Inc (formerly MicroStrategy) and BlackRock’s iShares Bitcoin Trust (IBIT).

Strategy has become infamous for turning its corporate balance sheet into a Bitcoin vault, holding over 580,000 BTC as of mid-2025.

Meanwhile, IBIT offers a cleaner, regulated route: a spot Bitcoin exchange-traded fund (ETF) backed by actual Bitcoin (BTC), built for institutional and retail investors alike.

This article compares the two as portfolio proxies, looking at risk, performance and who each one is really for.

It will start with Strategy’s story, explaining how it became one of the best-known Bitcoin proxy stocks.

Inside Strategy’s crypto portfolio

In August 2020, under the leadership of Michael Saylor, MicroStrategy made a dramatic pivot: allocating $250 million from its cash reserves to purchase roughly 21,454 BTC.

This marked a move from business intelligence software to a Bitcoin treasury company. At the time, Saylor argued that Bitcoin was a stronger, more modern form of digital gold than cash and effectively transformed the company into a unique financial instrument, offering investors leveraged exposure to Bitcoin through equity.

From that initial investment, the company institutionalized its crypto strategy. By late 2024, it had amassed around 444,000 BTC, funded through convertible bonds, equity raises and debt, essentially borrowing to buy more Bitcoin in a high-stakes flywheel approach.

Then, in February 2025, MicroStrategy formally changed its name to Strategy Inc, complete with a stylized “B” logo and orange branding, officially embracing its Bitcoin-first identity.

As of mid‑2025, Strategy holds approximately 580,250 BTC, solidifying its position as the largest corporate Bitcoin holder globally.

Did you know? Strategy holds more Bitcoin than most countries. In fact, it holds more than all sovereign nations except the US, China and the UK.

What is BlackRock’s Bitcoin ETF stock?

Now let’s turn to BlackRock, whose entry into the Bitcoin market brought the world’s largest asset manager into direct competition with long-time crypto natives.

In January 2024, after years of US SEC resistance, the regulator approved a slate of spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) was among them.

Unlike Strategy, which holds Bitcoin on its balance sheet, IBIT is a pure financial product: a one-to-one, physically backed ETF that allows investors to gain exposure to Bitcoin without touching the asset itself. No wallets or private keys — just a ticker, a brokerage account and an SEC filing.

The reception was explosive. By February 2024, IBIT had gathered over $50 billion in assets under management, becoming one of the fastest-growing ETFs in history.

BlackRock didn’t stop there. In March 2025, it launched a European version of the fund across Xetra, Euronext Paris and Amsterdam with a temporary 0.15% management fee, one of the lowest in the industry.

Perhaps most telling is how seriously BlackRock is taking this bet. In early 2025, the firm added IBIT to several of its model portfolios, including multi-asset and alternative strategies.

Executives have even suggested that Bitcoin may be starting to decouple from tech stocks, offering unique diversification for modern portfolios.

Did you know? BlackRock filed its Bitcoin ETF application using Coinbase for both custody and surveillance-sharing, marking one of the first times a major asset manager partnered with a crypto-native exchange to meet SEC demands.

Bitcoin proxy stocks comparison

Strategy and IBIT both offer exposure to Bitcoin, but how they do it and what that means for investors couldn’t be more different.

Strategy (MSTR) has consistently outperformed Bitcoin over the past five years, thanks to leverage and aggressive accumulation. But with that upside comes volatility: The stock often swings harder than Bitcoin itself. IBIT, by contrast, is built to track Bitcoin’s price directly. It does so with high accuracy but lags slightly due to management fees.

The risk profiles reflect this split. Strategy is a high-beta equity with corporate balance sheet exposure. It relies on convertible debt and equity raises to fuel its BTC strategy. IBIT avoids all of that. As a spot ETF, it holds Bitcoin in custody and gives investors clean exposure without company-specific risks.

Fees and taxes also differ. Strategy has no annual management cost, but investors take on potential dilution, corporate tax effects and governance risks. IBIT charges around 0.15%-0.20% annually (free through 2025 in Europe) but comes with tight spreads, deep liquidity and no corporate baggage.

Here’s how Strategy (MSTR) is different from BlackRock (IBIT):

Bitcoin exposure through stocks: Leveraged equity or regulated ETF?

If you’re bullish on Bitcoin and riding the volatility is part of the game for you, Strategy may make sense. If you prefer clean, regulated exposure, IBIT is the better fit.

Strategy offers magnified exposure thanks to leverage and aggressive accumulation. But be ready for wild equity swings tied to BTC price fluctuations and dilution cycles driven by debt and equity raises.

With BlackRock, you get direct access to Bitcoin’s price without worrying about wallets, keys or corporate capital maneuvers. Its low annual fee (~0.15%-0.20%, with a temporary 0% offer in Europe) offers simplicity and transparency over leverage and complexity.

Institutional crypto investing vs. retail investing

Institutional investors and speculators (including hedge funds and active traders) are drawn to Strategy for its high-beta exposure and the trading opportunities created by its corporate actions.

Meanwhile, retail and long-term investors tend to favor IBIT. It’s treated like a mainstream ETF — ideal for diversification and ease of access.

BlackRock leadership has explicitly argued that including a small allocation (1%-2%) of Bitcoin via IBIT can enhance portfolios by providing returns that aren’t tightly correlated with equities.

They highlight Bitcoin’s growing ability to decouple from tech stocks and serve as a distinct macro asset class.

What’s next for Strategy Inc and BlackRock in the Bitcoin era?

Both Strategy and IBIT are positioned to grow with the market, but in very different ways.

Strategy is expected to keep adding Bitcoin to its balance sheet, continuing its high-conviction, high-leverage approach. The company’s “Bitcoin capital allocation strategy” includes further debt and equity issuance, meaning future performance will remain tightly tied to BTC price action and potentially vulnerable to margin pressure.

That said, institutional support is growing: BlackRock now owns over 5% of Strategy’s stock, signaling confidence in its long-term thesis.

IBIT’s path is cleaner and more scalable. After its record-breaking launch in the US, the fund expanded into Europe in March 2025 with a reduced 0.15% fee, drawing in both retail and institutional capital.

With regulatory clarity improving and global appetite for spot Bitcoin ETFs rising, IBIT is likely to become the default choice for passive exposure.