Bitcoin Achieves Highest Sharpe Ratio Among Major Assets at 2.15
Key Insights on Bitcoin and MSTR
- Bitcoin's Sharpe ratio is 2.15, the highest among major assets, indicating strong risk-adjusted returns.
- MSTR has a Sharpe ratio of 2.00, reflecting solid performance through corporate bitcoin holdings.
- A Sharpe ratio of 2 means an asset delivers double the excess return over the risk-free rate per unit of volatility.
- Large-cap tech companies have Sharpe ratios around 1.0.
- Bitcoin's implied volatility is at 37%, near a two-year low, suggesting expected stable price action.
- Over six months, 30% of the S&P 500’s largest companies exhibited more volatility than Bitcoin.
- MSTR's implied volatility stands at 56%, down from peaks of 140% in December 2024 and 120% in April 2025.
- MSTR's multiple to net asset value (mNAV) is 1.61; the company plans no new stock offerings until mNAV exceeds 2.5.
- Year-to-date, Bitcoin has increased by 27%, while MSTR is up 24%.