Disclaimer: The analyst, who wrote this article, owns shares in the strategy.
Bitcoin’s risk-adjusted performance continues to stand out with a sharping ratio of 2.15, the highest among the great assets. This means that Bitcoin in relation to its volatility has delivered unique returns over the historic period.
Strategy (Mstr)that maintains significant Bitcoin exposure through business holdings, closely follows with a Sharp relationship of 2.00, reflecting similar strong performance.
A SHARPE ratio of 2 means that an asset has delivered twice the excess return over the risk-free rate for each unit of volatility, which is considered excellent in risk-adjusted benefits.
For context, several big-cap tech names are gathered around a sharping ratio of 1.0.
The data is current from August 14 for securities and August 15 for Bitcoin, according to strategy dashboard.
An important driving force of late for both has been volatility compression. Bitcoin’s implied volatility has dropped to 37%near a two-year low, suggesting that market participants expect more stable price action in the short term.
While Vetle Lunde, an analyst at K33 Research, says “Low volatility is maturity” and notes that 30% of the 100 largest S&P 500 companies over the past six months have been more volatile than Bitcoin showing that cryptocurrency is becoming more of a mature asset class.
In contrast, Mstr’s implied volatility is higher at 56% as it is a geared Bitcoin Proxy, but this number is good below the extreme is seen in the past year with 140% in December 2024 and over 120% in April 2025, according to the strategy Dashboard.
From a valuation perspective is Mstr’s Multiple to Net Asset Value (Mnav) sits on 1.61 after the recent revenue call in 2nd quarter. The company has stated that it will not implement a market offering of its joint share until its mnav rises over 2.5, except from paying dividends on its eternal preferred share and paying interest on its debt obligations.
Year to date Bitcoin has increased by 27%, while Mstr has risen 24%.
