As the crypto space continues to evolve, two distinct investment paths have emerged: MSTR’s high-risk growth opportunity and MSTY’s synthetic covered call strategy. Which path reigns supreme for a year of success?
From April 2024 to April 2025, two distinct investment paths emerged in the crypto space. Strategy (MSTR) and the YieldMax MSTR Option Income Strategy ETF (MSTY) followed different approaches to investing in MicroStrategy’s (MSTR) stock.
The Investment Strategies Behind MSTR and MSTY
From April 2024 to April 2025, two distinct investment paths emerged in the crypto space. Strategy (MSTR) and the YieldMax MSTR Option Income Strategy ETF (MSTY) followed different approaches to investing in MicroStrategy’s (MSTR) stock.
MSTR: A High-Risk Growth Opportunity
MSTR has evolved from an enterprise software company into a de facto bitcoin proxy, with the company holding 531,644 BTC as of April 15. This exposure makes its stock highly sensitive to bitcoin’s price movements. Since adopting its bitcoin treasury strategy in August 2020, MSTR shares have surged over 2,500%, driven by bitcoin’s strong 2024 rally.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
Launched in 2009 by an individual or group using the pseudonym Satoshi Nakamoto, bitcoin uses cryptography to secure and verify transactions.
The total supply of bitcoins is capped at 21 million, making it a scarce asset.
Bitcoin's value has fluctuated significantly over the years, but its adoption continues to grow, with many merchants and investors recognizing its potential as a store of value and medium of exchange.
However, this growth comes with volatility. Currently, the stock has an implied volatility of 87% and a 30-day historic volatility of 102%. MSTR is currently 43% below its all-time high set in November 2024, reflecting the sharp swings typical of a bitcoin-correlated asset. The stock pays no dividend.
MSTY: A Synthetic Covered Call Strategy
In contrast, MSTY is an income-focused ETF that does not hold MSTR shares directly. Its portfolio consists primarily of U.S. Treasury bills, cash, and short-term call options on MSTR, allowing it to synthetically replicate exposure without directly owning the stock.
MSTY employs a synthetic covered call strategy, selling options on MSTR to generate monthly income. This strategy limits upside participation but delivers consistent cash flow, appealing to investors seeking regular distributions. From April 4, 2024 to April 9, 2025, a $1,000 investment in MSTY produced a +59% total return, with 13 monthly distributions totaling $36.53.
Key Differences Between MSTR and MSTY
While both products are linked to MSTR‘s price action, they serve distinct purposes. MSTR offers high-risk growth potential tied to bitcoin, while MSTY delivers yield through a derivatives-based income strategy with inherent structural limitations.
MSTY is geared toward retail investors seeking exceptionally high income — but who are also willing to accept significantly higher risk and volatility. In contrast, traditional income strategies focus on low-volatility, stable-yield investments like broad index ETFs or dividend stocks.
Income refers to the amount of money earned by an individual within a specific period, typically measured in dollars or other local currencies.
It can come from various sources, including employment, investments, and government benefits.
According to the Bureau of Labor Statistics, the median household income in the United States was $67,149 in 2020.
Income levels vary significantly across countries, with some nations experiencing higher average incomes due to factors like economic growth and technological advancements.
Volatility in MSTY
The premium/discount activity in MSTY reflects both investor demand and underlying volatility in MSTR. Early high volatility supported strong option income and trading premiums, but as volatility eased in 2025, premiums narrowed and discounts appeared more often.
However, a renewed bitcoin rally and rising volatility in MSTR could reverse this trend, lifting option income, distributions, and investor demand.
- coindesk.com | MSTR vs. MSTY: Growth or Income? A 12 Month Showdown
