MSTY Stock vs MSTR Stock: Which Stock Wins the Bitcoin Bull Run?

As Bitcoin enters another explosive bull run, investors are increasingly looking for stock market plays that offer exposure to crypto’s upside without directly buying Bitcoin. 

Two such options MSTR (MicroStrategy stock) and MSTY(YieldMax MSTR Option Income Strategy ETF) have emerged as popular vehicles for riding Bitcoin's rally. 

But which one is the better choice for different types of investors: growth seekers or income hunters?

This article explores the core differences between MSTR and MSTY, analyzing their structure, risk-reward profiles, and how they perform during crypto market booms. 

We’ll also examine investor suitability and key considerations when choosing between these two crypto-linked equities.

What is MSTR Stock?

MSTR represents MicroStrategy, the enterprise analytics software company that transformed itself into a quasi-Bitcoin ETF by aggressively acquiring Bitcoin as a treasury reserve asset. 

This bold strategy, spearheaded by Chairman Michael Saylor, has turned MicroStrategy’s stock into a high-beta proxy for Bitcoin itself.

As of mid-2025, MicroStrategy holds over 200,000 BTC, making it the largest corporate holder of Bitcoin globally. This massive position means that MSTR’s stock price is heavily influenced by Bitcoin’s price movements.

Key Characteristics of MSTR:

• Type: Common stock

• Exposure: Direct Bitcoin exposure via corporate treasury

• Volatility: High tracks Bitcoin very closely

• Performance Driver: Bitcoin price + company’s operational performance

• Dividend: None

During bull markets, MSTR often experiences exaggerated upward price movements compared to Bitcoin itself due to the leverage effect. This has made MSTR a favorite among high-risk, high-reward investors.

Read Also: Is the MSTY Stock Related to MicroStrategy? Find Out Here!

What is MSTY Stock?

MSTY refers to the YieldMax MSTR Option Income Strategy ETF, an exchange-traded fund designed to provide income from MSTR’s price action without holding the actual stock (in the U.S. version).

There are two versions:

1. MSTY (US): Uses synthetic exposure via derivatives (options and Treasuries), does not own MSTR directly.

2. MSTY (CA): A Canadian ETF that holds MSTR shares and writes covered calls to generate consistent monthly income.

Key Characteristics of MSTY:

• Type: Covered call ETF

• Exposure: Indirect (US) or direct (CA) to MSTR

• Strategy: Covered calls for income generation

• Volatility: Moderate

• Dividend Yield: Exceptionally high (over 124% TTM in 2025)

• Upside Potential: Capped

The fund’s income comes from selling call options on MSTR shares, trading explosive capital appreciation for steady income and reduced volatility.

Read Also: MicroStrategy's $5.9B Bitcoin Loss Sparks Lawsuit, Yet $765M BTC Purchase Persists

MSTY vs MSTR: Key Differences Table

Performance During Bitcoin Bull Runs

Bitcoin bull runs tend to favor MSTR more than MSTY due to the nature of exposure. MSTR's stock price moves almost tick-for-tick with Bitcoin, sometimes even outperforming BTC thanks to market enthusiasm and leveraged price behavior.

Sample Returns During the 2024–2025 Bull Run:

• 12-Month Performance (to April 2025):

  • MSTR: +89%

  • MSTY: +59% (including dividends)

• Year-to-Date Performance (June 2025):

  • MSTR: +47.23%

  • MSTY: +38.72%

However, not all timeframes favor MSTY. In one analysis, while MSTR gained 34% YTD, MSTY declined by -18%, primarily due to its limited upside during strong rallies and full downside exposure.

Read Also: Analyzing Institutional Whales: Can Riot and Strategy Make Bitcoin Volatile?

Why MSTR May Win the Bitcoin Bull Run

1. Direct Leverage to Bitcoin Price

MicroStrategy's treasury is packed with Bitcoin. This direct exposure means MSTR behaves like a leveraged Bitcoin ETF, offering potentially massive upside.

2. Sentiment-Driven Momentum

When MicroStrategy announces new Bitcoin purchases, its stock price tends to surge sharply. This behavior is amplified during bull runs due to investor excitement.

3. Outperformance vs. Bitcoin

Thanks to this leverage effect, MSTR has often outperformed Bitcoin during rallies. It becomes an aggressive bet not just on BTC’s rise, but on the market’s reaction to it.

4. Institutional Inflows

Many institutional investors treat MSTR as a proxy for Bitcoin before spot ETFs are approved. This leads to higher liquidity and demand in bull runs.

Read Also: MicroStrategy’s Tactical Moves in Bitcoin (BTC) Investment for the Future

Why MSTY Still Has a Strong Case

1. High Income Generation

MSTY’s covered call strategy consistently delivers high yield over 124% in trailing twelve-month returns making it appealing to dividend-focused investors.

2. Reduced Volatility

Compared to MSTR, MSTY provides smoother exposure to Bitcoin price trends. The income cushion absorbs some market shocks.

3. Ideal for Conservative Crypto Exposure

MSTY allows investors to tap into crypto-linked momentum without committing to full Bitcoin exposure. It’s particularly useful for those managing volatility or seeking regular payouts.

4. Retail Accessibility

MSTY, as a U.S. ETF, is easier to access through traditional brokerage accounts, with no need for crypto wallets or direct BTC custody.

Read Also: MSTR Share Price Analysis: Forecasting the Bullish Momentum of MicroStrategy's Stock

Final Verdict

MSTR delivers explosive growth potential and is likely to outperform MSTY during a strong Bitcoin bull run. However, this comes with significantly higher volatility and drawdown risk.

MSTY, on the other hand, offers a more balanced, income-oriented approach with lower exposure to price swings. Its capped upside might underwhelm during rallies but can outperform in sideways markets thanks to consistent yield.

Choose MSTR if:

• You seek maximum capital gains

• You’re comfortable with volatility

• You believe Bitcoin will continue to rally aggressively

Choose MSTY if:

• You want income and yield stability

• You prefer lower volatility

• You believe in Bitcoin’s upside but want risk management

In summary, MSTR is the aggressive alpha-seeker’s tool, while MSTY is a tactical yield vehicle. In a bull run, both have roles one for amplifying growth, the other for harvesting income.

FAQ

What is the difference between MSTR and MSTY?

MSTR is the actual stock of MicroStrategy, while MSTY is an ETF using options to generate income based on MSTR’s price. MSTY doesn’t hold Bitcoin directly.

Which is better during a Bitcoin bull run?

MSTR typically performs better in bull markets due to direct exposure and leverage to Bitcoin’s price.

Why do investors choose MSTY?

MSTY offers high yields through covered call strategies, appealing to those seeking income and less volatility.

Does MSTY pay dividends?

Yes, MSTY provides very high dividend yields over 120% in some 2025 reports derived from its options strategy.

Should I buy MSTR or MSTY for 2025?

Choose MSTR for aggressive growth and MSTY for steady income. Align the choice with your risk tolerance and crypto exposure strategy.

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