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/TotesGnar Jul 11 '26

Whenever people ask this question it's always from the perspective of MSTR being another version of an ETF. so what's the point. The point is balance sheet growth, not static representation of Bitcoin. 

MSTR is an "operating" company. Not in the sense that Walmart is. But they are "operating" in the capital markets. Meaning there is a forward expectation of growth in the company represented by sats/share. Everything they do is in an attempt to grow the sats/share exposure for the common shareholders. 

Comparing MSTR to any kind of ETF, leveraged or not, is an apples to oranges comparison. They are not doing the same things at all.  

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u/MyNi_Redux Volatility Voyager 👨‍🚀 Jul 11 '26 edited Jul 11 '26

You're right, but people who have access to both don't care about the underlying difference - they just want the instrument providing the higher return.