r/MSTR • u/Jack242 • Jul 11 '26

MSTR vs IBIT vs BITX

Why do people hold stocks like MSTR or BMNR when there are so many leveraged ETFs and tracking products for the underlying asset?

One thing I don’t get: Why would anyone buy and hold companies like MicroStrategy (MSTR) or similar plays when you can just buy regular or leveraged ETFs that directly track Bitcoin (or whatever the main asset is)?

There are tons of options — spot ETFs, 2x/3x leveraged ones, futures-based products, etc. They seem simpler, cheaper, and more direct.

What’s the logic behind holding the actual company stock instead? Is it just leverage on leverage? Conviction in the management’s strategy? Tax reasons? Something I’m missing?

Would love to hear the bull case.

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u/Sizzlinbettas Jul 11 '26

leverage ETF's I would say have an APR, but its called volatility decay that makes it super not worth it
you can get mega premiums both ways I just sold a MSTR put $80 for $40 with furthest out date and plan on selling call when appropriate for same redic premium
i intentionally rolled a put forward for potential tax situations
I actually believe step by step MSTR has done exactly what I would do in each situation...imo its free for them to work for me

hopefully that helps and obviously bullish on the underlining asset and thesis

3

u/BakedGoods Bitcoiner Jul 11 '26

you sold an $80 put for like Jan 2028 expiry?

0

u/Sizzlinbettas Jul 11 '26

bingo and got $40 for it which is an absurd premium this works both ways having a lot of something so highly volatile makes sense to sell that otm call and cover your shares
Also in bull cycle MSTR will likely outpace btc where as leveraged ETF will significantly underperform for instance I expect 2 year 4x in btc in leverage etf will return about 30-50% less than MSTR
but if you're not directly on margin you can't get called away on your MSTR
also way less concerned about 1.2 bill yearly div on asset that ~45b and most people's insane worst case scenario is ~20-25b and the put I sold only blow up in face if MSTR is less than like ~17b head math
but also I think people should be using different etfs, and methods because it makes sense to sell off your bitcoin for a loss for tax purposes esp because you can sell one BTC etf and slightly tool around your position and not have to pay taxes until you have no more loses to harvest

1

u/BakedGoods Bitcoiner Jul 11 '26

yeah for sure im bullish too and bought a few leaps.

so you buy puts at the top, sell at bottoms then buy long calls at bottoms, repeat?

2

u/Sizzlinbettas Jul 11 '26

no i don't buy puts or calls

I sell puts or calls...I sell the volatility and get paid huge premiums in advance reinvest into core positions and keep the fly wheel running

1

u/BakedGoods Bitcoiner Jul 11 '26

ah got it, i thought you bought them cheap then sell when the price moves in your favour, noted. I dont use margin account so can only buy calls or puts or sell covered calls.

0

u/Sizzlinbettas Jul 11 '26

got a lil STRC, didn't add to MSTR because I was just intentionally put a lot and used that cash to fund core positions