- Bitcoin reports a Sharpe ratio of 2.15, the highest among major assets.
- Strategy (MSTR) follows closely with a Sharpe ratio of 2.00 due to its significant bitcoin holdings.
- Bitcoin’s implied volatility drops to 37%, marking a near two-year low and suggesting increased market stability.
- Over the past six months, 30% of the top S&P 500 companies have been more volatile than bitcoin, according to K33 Research.
- Year-to-date, bitcoin has risen 27% and MSTR has gained 24%.
Bitcoin has outperformed other major assets based on risk-adjusted returns, according to recent data as of August 15. Bitcoin’s Sharpe ratio, a measure that compares excess returns to risk, stands at 2.15. Strategy (MSTR), a company with extensive bitcoin exposure through corporate holdings, shows a similar performance with a Sharpe ratio of 2.00.
A Sharpe ratio of 2 means the asset delivers twice the excess return of the risk-free rate for every unit of volatility—a rate considered strong by industry norms. In comparison, most large-cap technology companies currently have Sharpe ratios around 1.0.
Recent figures from the Strategy dashboard highlight that bitcoin’s implied volatility has declined to 37%, indicating traders expect steadier price movements. K33 Research analyst Vetle Lunde notes that, “low volatility is maturity,” referencing data showing that 30% of the 100 largest S&P 500 firms were more volatile than bitcoin over the last six months. According to the same dashboard, MSTR’s implied volatility remains higher at 56% because it acts as a leveraged proxy for bitcoin exposure, but this is significantly reduced from levels of 140% in December 2024 and over 120% in April 2025.
On valuation, MSTR’s multiple to net asset value (mNAV) is currently 1.61, based on its Q2 earnings. The company has stated it will not sell additional shares on the open market unless its mNAV climbs above 2.5, aside from paying dividends on its perpetual preferred stock or servicing debt obligations, as detailed in this statement.
So far this year, bitcoin has gained 27%, while MSTR stock is up 24%.
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