Battle of MSTR vs. MSTY: The Thrill of Growth vs. The Charm of Income!

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What to know:

  • Oh, MSTR: +86%, thanks to Bitcoin’s wild ride. 🤯
  • MSTY, on the other hand, gave back +59%, with $36.53 in dividends over 13 months. 💸
  • As MSTR became less exciting, MSTY’s option income took a dive, leading to smaller payouts and a dip in its stock price. 😬

Between April 2024 and April 2025, the paths of Strategy (MSTR) and the YieldMax MSTR Option Income Strategy ETF (MSTY) were as different as day and night — one chasing the shiny coin of capital growth via Bitcoin, the other fumbling around for income with the options market. But oh, what a difference! 🎩✨

Let’s first talk about MSTR, which once called itself a software company, but has now become your go-to Bitcoin proxy, holding a hearty 531,644 BTC as of April 15. Oh, and did we mention that this stock is practically married to Bitcoin’s price swings? 📉💥 Since MSTR decided to join the Bitcoin revolution in 2020, it’s had a rather… explosive growth — up over 2,500%. But, with great growth comes great volatility. Ahem, 87% implied volatility, anyone? 💣 (Currently, MSTR is chilling at 43% below its peak in November 2024.) But hey, no dividends for you, my friend. 😏

Now, enter MSTY, launched in April 2024 — a more conservative play (if you consider the options market “conservative”). MSTY doesn’t even own MSTR shares directly. Instead, it’s playing the synthetic game, stacking up U.S. Treasury bills, cash, and short-term call options on MSTR. Nice try, MSTY! 🤑 It’s all about monthly income with a synthetic covered call strategy, giving you cash flow, but limiting your upside. So, for those who like a steady drip of cash, MSTY might be your cup of tea. ☕💵

Here’s a fun little breakdown of the last 12 months — a $1,000 investment in each, you ask?

  • MSTR: +86% return! Thanks to Bitcoin’s rise in 2024, $1,000 is now worth $1,895. Ka-ching! 🤑
  • MSTY: With 13 monthly payouts totaling $36.53 (from $4.13 to $1.33), that $1,000 became $1,591, a modest +59%. Not bad… but not MSTR’s level of fun. 🎢

But wait — let’s add some drama. MSTY’s full exposure to MSTR’s price swings meant that, while MSTR soared, MSTY could only watch and cry. 😢 Moreover, the monthly distributions, which were partly a return of capital (sneaky!), slowly reduced the fund’s net value, further dragging down its stock price. And just when you thought things couldn’t get more interesting, MSTY’s premiums and discounts played a little game of hide-and-seek with investors. Early on, it was all about premiums, but by 2025, the game turned more to discounts. It’s like a roller coaster for your wallet. 🎢💸

But let’s cut to the chase — while both MSTR and MSTY are tied to Bitcoin’s price movements, they couldn’t be more different. MSTR is your high-stakes, fast-driving, growth-seeking thrill ride. No seatbelt required! 🏎💨 Meanwhile, MSTY is your steady income-focused investment with all the thrills of options volatility… and a bit of “whoops” when the markets get wild. 🙃

In contrast to the usual dull, stable investments like index funds or dividend stocks, MSTY is for those who want high income with a side of excitement (and risk). It’s all fun and games until volatility arrives — and when it does, buckle up, it’s going to be a bumpy ride! 🎢💰

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2025-04-15 17:46