Defiance Daily Target 2x Long MSTR ETF (NASDAQ: MSTX)

에 대한 최신 뉴스 Defiance Daily Target 2x Long MSTR ETF (NASDAQ:MSTX)

Defiance Daily Target 2x Long MSTR ETF

Technology

The Fund is an actively managed exchange traded fund (ETF) that attempts to achieve 1.75 times (175 percent) the daily percentage change in the share price of the Underlying Security by entering into swap agreements on the Underlying Security. The Fund aims to achieve this daily percentage change for a single day, and not for any other period. A single day means the period from the close of regular trading on one trading day to the close on the next trading day.

Microstrategy Inc

First American Government Obligations Fund

Defiance Daily Target 1.75X Long MSTR ETF

MicroStrategy's Presentation

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Equities

News

Markets

$BTC

MSTR

ETF Opportunities Trust T-Rex 2X Long MSTR Daily Target ETF

MSTU

MSTX

마이크로스트레티지(NASDAQ:MSTR) 주식은 비트코인(CRYPTO: BTC) 움직임과 상반된 모습을 보였다. 이러한 추세는 11월에 마이크로스트레티지가 더 많은 0% 전환사채를 발행한 이후 더욱 뚜렷하게 나타났다.

0% 전환사채 추가 발행해 비트코인 매입한 마이크로스트레티지의 주가, BTC 가격과 다른 움직임 보여

MADORO METALS CORP by MADORO METALS CORP.

Madoro Metals Corp

In a world of increasingly divided markets between yield-hungry investors and adrenaline-seeking traders, Defiance ETFs is convinced there are some who want both. Meet the Defiance Leveraged Long + Income MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MST#NASDAQ">MST</a>), a recently introduced fund that combines leveraged long exposure to MicroStrategy Inc (Strategy) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) stock with an unusual twist in the <a href="https://www.benzinga.com/etfs">world of geared ETFs</a> — weekly income.
It&#8217;s a high-wire performance: part momentum game, part revenue driver and all constructed around one of Wall Street&#8217;s most unstable surrogates for Bitcoin.
Also Read: <a href="https://www.benzinga.com/25/05/45149385/new-grayscale-etf-lets-you-invest-in-bitcoin-without-the-coin">New Grayscale ETF Lets You Invest In Bitcoin, Without The Coin</a>
<h1 class="wp-block-heading">A First-of-Its-Kind Structure</h1>
MST is the inaugural ETF to provide 1.5x to 2x daily exposure to MicroStrategy (Strategy) while at the same time attempting to distribute income weekly through a credit call spread method. It&#8217;s a structural spin designed to calm the volatile wildness of leveraged investing with the promise of regular, options-based payouts.
The dual aim of the fund — long-term capital growth and income generation — demonstrates increasing demand among retail investors for products that provide more than a simple directional gamble.
But <a href="https://www.globenewswire.com/news-release/2025/05/02/3073048/0/en/Defiance-ETFs-Unveils-MST-The-First-Leveraged-MicroStrategy-ETF-that-Seeks-to-Pay-Income-Weekly.html">MST </a>is not exactly a low-risk proposition: the levered element sees dramatic MicroStrategy (Strategy) movements working both ways, and the fund&#8217;s performance can stray from the mark when markets are volatile.
MST itself holds no cryptocurrencies, but its underlying stock of MicroStrategy (Strategy) is nominally a Bitcoin exposure vehicle masquerading as such. With Chairman Michael Saylor at the helm, the company has amassed billions of Bitcoin and now marches in near-lockstep with crypto sentiment. 
That makes MST, for good or bad, a means of playing Bitcoin&#8217;s upside (and downside) without actually holding the asset.
The firm bets on its success with previous MSTR-tied funds, the Daily Target 2X Long MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) and the Daily Target 2X Short MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMST#NASDAQ">SMST</a>), which collectively have grown more than $1 billion in assets. MST extends the firm further into its theme of democratizing thematic, tactical ETFs to retail investors — without dumbing down the complexity.
But this is no sleepy index fund. The options overlay and dynamic leverage of the fund mean that investors have to remain vigilant to both reward and risk. MST can produce income and leverage returns — but in volatile markets, it can also leverage losses.
MST provides an unorthodox combination of crypto-adjacent leverage and weekly income, designed for risk-willing investors seeking to straddle momentum and cash flow. 
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/05/45153699/new-etf-bets-on-small-companies-to-offer-growth-monthly-income">New ETF Bets On Small Companies To Offer Growth, Monthly Income</a></li>
</ul>

New ETFs

ETFs

S&P Midcap 400 Index Capital Protected Notes 

SMST

New MST ETF Mixes MicroStrategy (Strategy) Leverage With A Side Of Weekly Income

A recently launched exchange-traded fund, named the REX Bitcoin Corporate Treasury Convertible Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BMAX#NASDAQ">BMAX</a>), began trading on Friday, focusing on convertible bonds issued by firms that hold Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) on their balance sheets, such as Strategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), <a href="https://www.benzinga.com/quote/MSTR/analyst-ratings">previously known as MicroStrategy</a>.
Managed by REX Financial, this fund targets companies that have adopted the practice of issuing equity-linked notes to finance their cryptocurrency investments, a strategy led by Strategy under its executive chairman, Michael Saylor, Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-03-14/michael-saylor-fueled-crypto-complex-gets-bigger-with-debt-etf">reported</a>.
These convertible bonds start as low-interest debt but can transform into company stock if share prices reach a certain threshold, offering investors both interest income and potential equity gains.
Strategy has issued nearly $9 billion in convertible bonds in recent years, amassing a Bitcoin portfolio valued at around $40 billion, which forms a significant portion of the $60 billion held by over 70 publicly traded companies, according to data from Bitwise. 
Other firms like MARA Holdings, Riot and Bitdeer Technologies Group have also issued billions in convertible bonds over the past four months, expanding their presence in the U.S. convertibles market.
"Individual investors have struggled to access these bonds until now, and BMAX changes that," said Greg King, REX Financial's CEO, noting the fund's aim to open this market to retail traders during a period of market unease driven by trade-war concerns.
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/03/44326594/trump-administration-signals-aggressive-cost-neutral-bitcoin-accumulation-strategy">Trump Administration Signals Aggressive Cost-Neutral Bitcoin Accumulation Strategy</a>
Bitwise recently launched a separate fund tracking an index of companies with Bitcoin in their treasuries, where Strategy accounts for nearly a quarter of the holdings. 
Convertible bonds, often utilized by institutional investors and hedge funds for arbitrage strategies, carry risks if issuers face financial difficulties with interest or principal payments. 
The ETF market already includes at least seven convertible-bond funds, such as the $4 billion SPDR Bloomberg Convertible Securities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CWB#NYSE">CWB</a>), which has been active since 2009, with most funds holding some exposure to Strategy.
Additionally, leveraged funds like (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) and (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#NASDAQ">MSTU</a>), which aim to deliver twice the daily return of Strategy's stock, have drawn $4 billion in investments since their launches in August and September 2024, showing strong investor interest despite Strategy's recent price drops.
Athanasios Psarofagis, an analyst at Bloomberg Intelligence, commented on the interconnected financial products tied to Strategy, saying, "A growing network of ETFs is emerging around Strategy, which supports its ongoing relevance in the market." 
He added that a decline in Strategy's stock could impact this network, including funds designed to deliver double the inverse return of the stock, reflecting the risks of this interconnected system.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/03/44321245/ripple-sec-lawsuit-nears-end-will-xrp-be-classified-as-commodity-like-ethereum">Ripple-SEC Lawsuit Nears End: Will XRP Be Classified As Commodity Like Ethereum?</a></li>
</ul>
Image: Shutterstock

BMAX

Spdr Barclays Capital Convertible Securities Etf

New ETF Targets Convertible Bonds Of Bitcoin-Holding Companies Like Strategy

U.S. stocks faced their steepest weekly drop in months as uncertainty over trade policy and Federal Reserve Chair Jerome Powell's cautious stance on rate cuts rattled investor sentiment. The S&amp;P 500 marked its worst week since September, while the Nasdaq and Dow also ended the week in the red. Rising unemployment concerns and weak earnings from major companies added to the pressure. Despite the broader market slump, a few <a href="https://www.benzinga.com/etfs">ETFs emerged as top performers</a>, benefiting from volatility, leveraged strategies and sector-specific trends.
Also Read: <a href="https://www.benzinga.com/markets/25/03/44211421/us-economy-teetering-recession-may-be-looming-as-bond-market-reacts-to-trump-policies">US Economy Teetering? Recession May Be Looming As Bond Market Reacts To Trump Policies</a>
1. Defiance Daily Target 2x Long MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) – This ETF offers leveraged exposure to MicroStrategy.
<ol></ol>
<ul>
<li>Weekly Gains: 55.75%</li>
</ul>
<ul>
<li>Expense Ratio: 1.29%</li>
</ul>
2. iPath Series B S&amp;P 500 VIX Short-Term Futures ETN (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VXX#BATS">VXX</a>) – With market volatility spiking, this exchange-traded note, which tracks short-term VIX futures, gained as investors sought hedges against uncertainty.
<ul>
<li>Weekly Gains: 15.37%</li>
</ul>
<ul>
<li>Expense Ratio: 0.89%&nbsp;</li>
</ul>
3. ProShares VIX Short-Term Futures ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#BATS">VIXY</a>) – Another volatility-linked ETF, VIXY benefited from the market downturn, rising alongside the VIX index as risk-off sentiment took hold.
<ul>
<li>Weekly Gains: 15.35%</li>
</ul>
<ul>
<li>Expense Ratio: 0.85%</li>
</ul>
4. T-Rex 2X Long Bitcoin Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/BTCL#BATS">BTCL</a>) – Bitcoin's rally lifted BTCL, which amplifies daily price movements in the cryptocurrency, attracting traders seeking leveraged exposure.
<ul>
<li>Weekly Gains: 12.41%</li>
</ul>
<ul>
<li>Expense Ratio: 0.95%</li>
</ul>
5. Tuttle Capital Daily 2X Inverse Regional Banks ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKRE#NASDAQ">SKRE</a>) – As concerns over economic resilience and interest rate policy pressured regional banks, this inverse ETF gained by betting against the sector.
<ul>
<li>Weekly Gains: 11.91%</li>
</ul>
<ul>
<li>Expense Ratio: 0.75%</li>
</ul>
Amid market instability, these ETFs provided traders opportunities to capitalize on volatility, crypto momentum and sector-specific downturns.
<ol></ol>
Also Read: <a href="https://www.benzinga.com/markets/25/03/44209030/benzinga-bulls-and-bears-broadcom-chargepoint-bigbear-ai-and-tariff-whiplash-confounds-markets">Benzinga Bulls And Bears: Broadcom, ChargePoint, BigBear.ai — And Tariff Whiplash Confounds Markets</a>
A Glimpse Into The Past Week
U.S. stocks ended higher on Friday, recovering from early losses after Powell said the economy was &#8220;in a good place.&#8221;
However, concerns over U.S. trade policy led to Wall Street's biggest weekly decline in months, with the S&amp;P 500 down 3.1%, its worst since September, according to Reuters. Meanwhile the Nasdaq and Dow fell 3.45% and 2.37%, respectively. The Russell 2000 Small Cap Index dropped 3.86%, as the S&amp;P 500 and Nasdaq posted their third consecutive weekly decline, the longest since mid-2023. 
Powell reiterated a cautious stance on monetary policy easing, while job growth rebounded in February, though unemployment ticked up to 4.1%, raising concerns over economic resilience. 
Morgan Stanley and Goldman Sachs lowered growth forecasts, citing weaker consumer spending. 
Trade tensions remained high as Trump granted a four-week tariff reprieve for Canada and Mexico but maintained barriers with China. 
Earnings disappointments also pressured markets last week. For instance, Hewlett Packard Enterprise (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NASDAQ">HPE</a>) fell 12% on tariff-related profit warnings, Costco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) lost 6% on higher merchandise costs, while Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) surged 8.6% after a strong AI-driven forecast. 
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44203960/aviation-etfs-face-turbulence-as-oil-prices-fluctuate-airline-stocks-slide">Aviation ETFs Face Turbulence As Oil Prices Fluctuate, Airline Stocks Slide</a></li>
</ul>
Photo: Shutterstock

Broad U.S. Equity ETFs

AVGO

BTCL

COST

SKRE

VIXY

Barclays Bank iPath S&P 500 VIX Short-Term Futures ETN

Wall Street's Worst Week Since September: 5 ETFs That Defied The Market Slump

Cryptocurrency experts have warned against the use of double-leveraged Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) exchange-traded funds, emphasizing that these are designed for short-term trading strategies due to their daily rebalancing and inherent volatility. While the long-term investors risk significant losses.
What Happened: The double-leveraged ETFs tracking Strategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), formerly MicroStrategy, have raised concerns among cryptocurrency experts. The firm now known as just &#8216;Strategy&#8217; is a Michael Saylor-led company heavily invested in Bitcoin.
While these ETFs, like T-Rex 2X Long MSTR Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#BATS">MSTU</a>) launched in September, and Defiance Daily Target 2x Long MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) launched in August, promise amplified daily returns, experts warn they are unsuitable for long-term investment strategies.
&#8220;Leveraged ETFs such as MSTU and MSTX offer multiples of the daily performance of the underlying stock, MicroStrategy Inc,&#8221; Srinivas L, MD &amp; CEO of 9Point Capital, told <a href="https://pro.benzinga.com/dashboard">Benzinga</a>.
&#8220;While the ETFs aim to double the daily return, they also double the potential loss. With the inherent volatility of Bitcoin, the doubling can lead to wild fluctuations in value.&#8221;
A key concern highlighted by experts is the impact of daily rebalancing, a mechanism inherent in leveraged ETFs.
&#8220;They're designed for short-term strategies, not long-term holding, as daily rebalancing can erode returns over time, especially in volatile markets,&#8221; says Thangapandi, CEO and Founder of Koinpark.
This daily rebalancing can lead to a phenomenon known as &#8220;value decay,&#8221; where the ETF&#8217;s long-term performance deviates significantly from the expected multiple of the underlying asset&#8217;s cumulative return, explains Srinivas L.
Sathvik Vishwanath, Co-founder and CEO of Unocoin, reinforces this point, stating, &#8220;Leveraged plays on BTC, or in this case, BTC-exposed companies like Strategy, are inherently high-risk.&#8221; These are best suited for &#8220;experienced traders rather than long-term investors.&#8221;
He emphasizes that these ETFs are designed for short-term trading and not holding and that their long-term returns often don&#8217;t match expected multiples, &#8220;due to daily rebalancing.&#8221;
See Also: <a href="https://www.benzinga.com/general/market-summary/25/02/43683299/cisco-systems-lands-700m-ai-gold-rush-amid-increased-appetite-from-tech-giants-build-more-and-we-will-buy-more-customers-tell-ceo">Cisco Systems Lands $700M AI Gold Rush Amid Increased Appetite From Tech Giants: &#8216;Build More And We Will Buy More&#8217;</a>
Why It Matters: MSTU and MSTX have shown significant <a href="https://www.benzinga.com/24/12/42667093/microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face">tracking errors in the past</a>, likely due to the company&#8217;s volatile swaps and options exposure.
These ETFs have on occasion deviated substantially from their intended 2x daily performance, as seen during the price swings in November 2024. It has exceeded or fallen short of expected movements based on Strategy&#8217;s stock price. These swings pose an increased risk for investors.
Strategy is the only publicly listed company holding the highest Bitcoin reserves, representing 2.28% of the total 21 million supply. According <a href="https://treasuries.bitbo.io/#public">to</a> BiTBO, MSTR held 478,740 coins, valued at $45.971 billion, as of Feb. 12, 2025.
See Also: <a href="https://www.benzinga.com/24/12/42667093/microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face">Strategy ETFs Face Tracking Error Because Of Volatility: Here Are The Potential Risks Investors Face</a>
Price Action: Strategy rose by 2.30% to $326.82 apiece on Wednesday and advanced further by 0.44% in after-hours. The exchange-traded fund tracking the Nasdaq 100 index, Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose by 0.059%.
MSTR shares have gained 8.94% on a year-to-date basis, whereas it was down by 376.41% over the last year.
The average price target among 14 <a href="https://www.benzinga.com/quote/MSTR/analyst-ratings">analysts tracked by Benzinga</a> is $494.93 with a ‘Buy' rating. The estimates range from $140 to $690 apiece. Recent ratings from Barclays, Keefe, Bruyette &amp; Woods, and Maxim Group suggest a $493.67 target, implying a potential upside of 50.39%.
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/MSTR/analyst-ratings"><img loading="lazy" decoding="async" width="1024" height="380" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/13020508/MSTR-ANR-Latest-1024x380.png" alt="" class="wp-image-780320" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/13020508/MSTR-ANR-Latest-1024x380.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/13020508/MSTR-ANR-Latest-300x111.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/13020508/MSTR-ANR-Latest-768x285.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/13020508/MSTR-ANR-Latest.png 1063w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/02/43650247/marriotts-digital-penetration-hits-historic-highs-as-bonvoy-app-downloads-soar-adding-31-million-new-members-ceo-says-transformation-enhancing-the-customer-experience" target="_blank" rel="noreferrer noopener">Marriott's Digital Penetration Hits ‘Historic Highs' As Bonvoy App Downloads Soar Adding 31 Million New Members</a></li>
</ul>
Photo courtesy: Strategy

Analyst Color

Market Summary

Analyst Ratings

[Exclusive] Michael Saylor's MSTR-Linked ETFs Are 'Not For Long-Term Investors' Say Crypto Experts: '…They Also Double The Potential Loss'

MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) stock has seemingly diverged with respect to the movement in Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) prices, this trend has been pronounced since the company started issuing more 0% convertible notes in November.
What Happened: MicroStrategy has fallen by 20.34% month-to-date about five times more than the Bitcoin prices, which was down just 4.34% in the same period.
According to an X post by the Kobeissi Letter, the gap between the two assets is widening.
MicroStrategy is the only publicly listed company holding the highest Bitcoin BTC/USD reserves, representing 2.116% of the total 21 million supply, at a cost of $41.11 billion. The company has also raised $20 billion of debt in 2024 to buy more coins.
Another post in the thread said, &#8220;For most of the year, the correlation between MicroStrategy and Bitcoin was incredibly strong. However, something began to shift over the last month, particularly as the company took on tons of debt. Then, MSTR suggested raising the authorized share count by 10 billion.&#8221;
According to Kobeissi, there shouldn&#8217;t exist such a divergence between the performance of the two assets as MSTR is considered a leveraged play on BTC. However, citing an example of a triple-levered S&amp;P 500 ETF, Kobeissi explains how the movement in such assets works.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">If <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$MSTR</a> is really just a levered <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> play, why is there such a large divergence. Here&#39;s the S&amp;P 500 ETF, <a href="https://twitter.com/search?q=%24SPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPY</a>, compared to a triple levered S&amp;P 500 ETF, <a href="https://twitter.com/search?q=%24SPXL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPXL</a>. Since November 1st, <a href="https://twitter.com/search?q=%24SPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPY</a> is up ~3.5% while <a href="https://twitter.com/search?q=%24SPXL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPXL</a> is up ~9.8%. This makes sense as it is TRIPLE levered. <a href="https://t.co/CiiX0puZ6N">pic.twitter.com/CiiX0puZ6N</a>
&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1873830243523584506?ref_src=twsrc%5Etfw">December 30, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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According to Kobeissi, the MSTR model is to first, &#8220;Borrow money through 0% convertible notes,&#8221; and &#8220;Buy Bitcoin and drive price higher.&#8221; It added that MicroStrategy then sells new shares at a premium and uses the proceeds to buy more Bitcoin &#8211; and this process repeats.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42721523/apples%20chinese-rival-huawei-slashes-prices-for-new-year-boost-should-tim-cook-led-company-be-worried-heres-what-analysts-are-saying-about-aapl-stock">Apple&#8217;s Chinese Rival Huawei Slashes Prices For New Year Boost: Should Tim Cook-Led Company Be Worried?</a>
Why It Matters: Earlier on Dec. 23, MicroStrategy floated a proposal to increase the number of authorized shares of class A common stock, par value $0.001 per share, from 330,000,000 shares to 10,330,000,000 shares and preferred stock from 5,000,000 shares to 1,005,000,000 shares.
Kobeissi <a href="https://x.com/KobeissiLetter/status/1873830254877565388">said</a>, &#8220;If the plan is approved, bears will say that this is a highly dilutive move for existing shareholders. However, if it is not approved, then MicroStrategy will be unable to continue buying Bitcoin on leverage.&#8221; 
However, the odds of the share count approval being raised are high, since the company&#8217;s co-founder Michael Saylor himself currently holds 46.8% of the voting power.
Sharp deviations have also been witnessed in the exchange-traded funds <a href="https://www.benzinga.com/24/12/42667093/microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face">tracking</a> MicroStrategy, likely stemming from the exposure to its volatile swaps and options.
The T-Rex 2X Long MSTR Daily Target ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#NYSE">MSTU</a>) launched on Sept. 18, this year, and Defiance Daily Target 2x Long MSTR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NYSE">MSTX</a>) launched on Aug. 14, are the two U.S.-listed leveraged ETFs which aim to provide twice the daily returns of MicroStrategy. These have lately diverged too as it acts as a levered on-levered play
Price Action: Shares of MicroStrategy were down over 8.19% on Monday and it fell further by 3.09% to $293.59 apiece in after-hours. The stock has returned 342.15% on a year-to-date basis, compared to the Nasdaq Composite's return of 31.97% in the same period, according to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a> data.
About 12 analysts <a href="https://www.benzinga.com/quote/MSTR/analyst-ratings">tracked</a> by Benzinga have a consensus ‘buy' rating on the stock with a price target of $449.5 per share.
The three most recent analyst ratings between Bernstein, TD Cowen, and Barclays imply an 86.20% upside for MSTR.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/MSTR/analyst-ratings"><img loading="lazy" decoding="async" width="943" height="352" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest.png" alt="" class="wp-image-712727" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest.png 943w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest-300x112.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest-768x287.png 768w" sizes="(max-width: 943px) 100vw, 943px" /></a></figure>
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42720866/bond-vigilantes-send-loud-warning-message-as-treasuries-climb-to-may-highs-is-the-santa-rally-in-serious-doubt-heres-what-analysts-say">Bond Vigilantes Send &#8216;Loud Warning Message&#8217; As Treasuries Climb To May Highs: Is The Santa Rally In &#8216;Serious Doubt&#8217;? Here&#8217;s What Analysts Say</a></li>
</ul>
Photo courtesy: Shutterstock

Bitcoin's Levered Play MicroStrategy Witnesses Divergence: Shares Underperform BTC As Company Buys More Coins By Issuing 0% Convertible Notes

Two leveraged exchange-traded funds (ETFs) have been identified as the worst performers of the year, according to&nbsp;Morningstar. The&nbsp;Defiance Daily Target 2X Long&nbsp;MSTR ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) has been named the worst, with&nbsp;Bryan Armour, Morningstar&#8217;s&nbsp;director of passive strategies research,&nbsp;describing it as a &#8220;Russian nesting doll&#8221; of issues.
What Happened: The ETF, valued at $2.2 billion, focuses on MicroStrategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), a company with significant investments in Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>). The ETF amplifies risks by doubling down on a stock that already acts as a leveraged bitcoin proxy. Structural issues such as imprecise swaps and volatility drag further exacerbate its problems, the Financial Times <a href="https://www.ft.com/content/ba85df0c-eb95-4f12-a811-1f99d1810315?ref=biztoc.com">reported </a>on Friday.
The&nbsp;YieldMax Short NVDA Option Income&nbsp;Strategy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIPS#NYSE">DIPS</a>), valued at $13 million, also made the list due to its high-yield appeal paired with substantial downside risk through complex derivatives. Armour emphasized that both ETFs demonstrate&nbsp;how high fees and excessive&nbsp;risk can erode long-term returns.
As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, MSTX&#8217;s yearly returns have climbed by 237.33% as of Friday&#8217;s pre-market hours. Meanwhile, DIPS dropped by 38.76% in terms of YTD returns.
See Also:&nbsp;<a href="https://www.benzinga.com/24/12/42680005/dogecoin-shiba-inu-or-pepe-which-were-the-top-performing-meme-coins-in-2024-the-answer-might-surprise-you?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Dogecoin, Shiba Inu, Or Pepe? Which Was The Top-Performing Meme Coin In 2024? The Answer Might Surprise Y</a>
On the other hand, two ETFs were commended for their effective strategies:&nbsp;Jensen&#8217;s&nbsp;$70 million Quality Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JGRW#NYSE">JGRW</a>) and&nbsp;Neuberger Berman&#8217;s&nbsp;$216 million Small-Mid Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NBSM#NYSE">NBSM</a>). These products offer proven, active strategies with lower volatility and competitive returns.
Benzinga Pro data revealed that JGRW increased by 3.96% in terms of YTD returns while NBSM climbed by 0.90%.
Why It Matters: The&nbsp;Defiance Daily Target 2X Long&nbsp;MSTR ETF&nbsp;and its counterpart, the T-Rex 2X Long MSTR Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#BATS">MSTU</a>), collectively <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42275232/leveraged-microstrategy-etfs-are-playing-with-fire-experts-warn">manage around $5 billion</a> in assets. These funds are designed to amplify&nbsp;MicroStrategy&#8217;s daily stock returns by 2x, reflecting investor enthusiasm amid Bitcoin&#8217;s recent rally. However, experts have warned that these ETFs expose investors to significant risks and underperformance.
Furthermore, these ETFs have shown&nbsp;<a href="https://www.benzinga.com/24/12/42667093/microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face">significant tracking errors</a>&nbsp;due to their exposure to volatile swaps and options. This highlights potential risks for investors, as sharp deviations have been observed in the ETFs tracking&nbsp;MicroStrategy, underscoring the challenges of maintaining alignment with the underlying asset.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42666635/blackrocks-bitcoin-etf-could-outshine-sp-500-tracking-spy-to-become-top-investment-vehicle-but-it-will-take-a-long-time-says-prominent-analyst?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Blackrock&#8217;s Bitcoin ETF Could Outshine S&amp;P 500-Tracking SPY To Become Top Investment Vehicle But It Will&nbsp;Take A &#8216;Long&#8217; Time, Says Prominent Analyst</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

General

DIPS

Trust for Professional Managers Jensen Quality Growth ETF

JGRW

Neuberger Berman ETF Trust Neuberger Berman Small-Mid Cap ETF

NBSM

'Russian Nesting Doll' Of Problems: MSTX And DIPS Top Morningstar's Worst ETF List For 2024

Sharp deviations have been witnessed in the exchange-traded funds tracking Michael Saylor&#8216;s MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), likely stemming from the exposure to its volatile swaps and options.
What Happened: The T-Rex 2X Long MSTR Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#BATS">MSTU</a>) launched on Sept. 18, 2024, and Defiance Daily Target 2x Long MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) launched on Aug. 14, 2024, are the two U.S.-listed leveraged ETFs which aim to provide twice the daily returns of MicroStrategy.
However, these ETFs have shown significant tracking errors to their underlying asset, MicroStrategy, highlighting potential risks for investors.
<ul>
<li>MSTU: On No. 21, MSTU declined 25.3%, 7% less than expected given MicroStrategy&#8217;s 16% drop. However, on Nov. 25, MSTU fell 11.3%, exceeding the expected 8.7% decline based on MicroStrategy&#8217;s 4.4% fall.</li>
<li>MSTX: This fund also displayed tracking error, most notably on Nov. 25, when it plummeted 13.4%, 4.7% more than anticipated.</li>
</ul>
This underscores a potential for significant deviations in leveraged ETFs like MSTU and MSTX from their intended two times daily performance, presenting heightened risks for investors.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42638575/microstrategy-stock-declines-over-14-amid-heightened-volatility-over-sp-500-inclusion-concerns-heres-what-is-happening">MicroStrategy Stock Declines Over 14% Amid Heightened Volatility Over S&amp;P 500 Inclusion Concerns: Here&#8217;s What Is Happening</a>
Why It Matters: MicroStrategy is the only publicly listed company holding the highest Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) reserves, representing 2.1% of the total 21 million supply, at a cost of $27.1 billion. The company has also <a href="https://www.benzinga.com/markets/equities/24/11/42186167/michael-saylors-microstrategy-convertible-notes-to-buy-bitcoin-offer-no-interest-so-why-are-investors-rushing-to-buy-them">raised </a>$20 billion of debt in 2024 to buy more.
According to a <a href="https://www.ft.com/content/f4821570-f6d3-468c-8553-570ccfead14a">report</a> by Financial Times, Dave Mazza, the chief executive of Roundhill Investments says that the ETF tracking error is not an ETF or leveraged ETF problem, it is a MicroStrategy ETF problem. He said that these ETFs indirectly own (through saps and options) over 10% of MicroStrategy&#8217;s market cap, an unprecedented level for leveraged ETFs and a significant holding even among traditional ETFs.
"Simply put, MicroStrategy is too small a company to accommodate the AUM and trading volume in these products. At this point, these ETFs have already reached the breaking point,&#8221; Mazza told FT.
According to Elisabeth Kashner, director of global fund analytics at FactSet, one solution to the tracking error is that these ETFs can stop the new unit creation and behave like a closed-end fund when swap lines are exhausted, however, this is discouraged by the Securities and Exchange Commission (SEC.)
Kashner told FT that T-Rex and Defiance, the firms that operate these ETFs face a suboptimal choice. &#8220;They can limit their growth or they can live with the limited accuracy and so far they have chosen to prioritise growth over accuracy," Kashner added.
Price Action: Shares of MicroStrategy were down over 1% in premarket trading on Tuesday. The stock has returned 385% on a year-to-date basis, compared to the Nasdaq Composite&#8217;s return of 33.85% in the same period, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.
About 12 analysts tracked by <a href="https://www.benzinga.com/quote/MSTR/analyst-ratings">Benzinga</a> have a consensus &#8216;buy&#8217; rating on the stock with a price target of $449.5 per share.
The three most recent analyst ratings between Bernstein, TD Cowen, and Barclays imply a 62% upside for MSTR.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/MSTR/analyst-ratings"><img loading="lazy" decoding="async" width="940" height="351" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24042031/mstr-analyst-ratings.png" alt="" class="wp-image-705628" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24042031/mstr-analyst-ratings.png 940w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24042031/mstr-analyst-ratings-300x112.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24042031/mstr-analyst-ratings-768x287.png 768w" sizes="(max-width: 940px) 100vw, 940px" /></a></figure>
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</ul>
Photo courtesy: Shutterstock

MicroStrategy ETFs Face Tracking Error Because Of Volatility: Here Are The Potential Risks Investors Face

MicroStrategy Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) leveraged ETFs have <a href="https://www.benzinga.com/crypto">amplified the company&#8217;s role</a> as a de facto Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) proxy.
According to JPMorgan analyst Nikolaos Panigirtzoglou, these ETFs — Defiance Daily Target 2x Long MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) and the T-Rex 2X Long MSTR Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#BATS">MSTU</a>) — have fueled record inflows and significantly impacted MicroStrategy's stock volatility and valuation.
Leveraged ETFs tied to MicroStrategy stock accounted for $3.4 billion of November's $11 billion inflows into crypto markets, Panigirtzoglou notes. 
These ETFs, designed to offer amplified exposure to Bitcoin through MicroStrategy's stock, are increasingly popular among retail investors who lack access to direct Bitcoin ETFs. This surge underscores their growing importance in facilitating Bitcoin exposure via equity markets.
Read Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42275232/leveraged-microstrategy-etfs-are-playing-with-fire-experts-warn">Leveraged MicroStrategy ETFs Are Playing With Fire, Experts Warn</a>
<h2 class="wp-block-heading">Rebalancing Flows Amplify Stock Volatility</h2>
Daily rebalancing of these ETFs magnifies volatility in MicroStrategy's stock. The &#8220;price-insensitive&#8221; nature of these flows, as described by Panigirtzoglou, exacerbates market moves, particularly during end-of-day trading. 
In November, there were five instances where rebalancing flows exceeded $2 billion in a single day. This contributed to the stock's near 60% surge during the month.
<h2 class="wp-block-heading">A Premium On Bitcoin Exposure</h2>
MicroStrategy's stock trades at a premium, reflecting factors like its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39045022/microstrategys-big-move-from-bitcoin-bet-to-russell-1000-inclusion">inclusion in indices</a> like MSCI World, enabling passive inflows, and its leveraged Bitcoin acquisition strategy. 
MicroStrategy &#8220;offers a way for those investors restricted from investing in spot bitcoin ETFs to gain bitcoin exposure,&#8221; Panigirtzoglou said.
The company also serves as an &#8220;equivalent to a leveraged bitcoin fund (given its issuance of both equity and debt to acquire bitcoins),&#8221; he added.
With $17 billion spent on Bitcoin in 2024, including $13 billion this quarter alone, MicroStrategy's leveraged ETFs have become a linchpin in its Bitcoin acquisition strategy, reshaping its market presence and redefining how retail investors access crypto.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/42208970/microstrategy-linked-etfs-skyrocket-400-this-year-is-this-the-michael-saylor-effect">MicroStrategy-Linked ETFs Skyrocket 400% This Year: Is This &#8216;The Michael Saylor Effect&#8217;?</a></li>
</ul>
Image: Shutterstock

Fintech news covering the emerging Financial Technology services sector

Fintech

Long Ideas

Specialty ETFs

Tech

Trading Ideas

How Leveraged MicroStrategy ETFs Are Powering The Bitcoin Surge

Analysts are closely examining the impact of&nbsp;Michael Saylor, co-founder of&nbsp;MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), on exchange-traded funds (ETFs) that are<a href="https://www.benzinga.com/markets/equities/24/11/42186167/michael-saylors-microstrategy-convertible-notes-to-buy-bitcoin-offer-no-interest-so-why-are-investors-rushing-to-buy-them"> linked to the company&#8217;s performance</a>. This comes amid a significant surge in MicroStrategy&#8217;s stock, driven by its substantial Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) holdings.
What Happened: The volatility of&nbsp;MicroStrategy has led to significant returns for ETFs tied to its performance. The stock has surged 416.19% year-to-date, impacting various ETFs.
The&nbsp;Bitwise Crypto Industry Innovators ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BITQ#NYSE">BITQ</a>) with 18.35% MSTR holding saw a rise of 68.58% so far this year, while the&nbsp;Schwab Crypto Thematic ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STCE#NYSE">STCE</a>), which gives 14.4% exposure to MSTR, increased by 55.07%.
The&nbsp;T-Rex 2x Long MSTR Daily&nbsp;Target&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#BATS">MSTU</a>) experienced a remarkable 453.76% gain, and the&nbsp;Defiance Daily Target 2x Long&nbsp;MSTR ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) rose by 309.09%, Barron&#8217;s <a href="https://pro.benzinga.com/">reported</a> on Wednesday. 
Both T-Rex and Defiance have hedged with inverse ETFs, but the&nbsp;T-Rex 2x Inverse MSTR Daily&nbsp;Target (MSTZ) holds&nbsp;only $155 million in assets.
See Also:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42152684/musk-tweet-sparks-dogecoin-surge-fuels-speculation-on-x-payments?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Musk Tweet Sparks Dogecoin Surge, Fuels Speculation On X Payments</a>
Matthew Tuttle, manager of the T-Rex ETF, attributes this phenomenon to &#8220;The Michael Saylor effect,&#8221; likening it to the influence of other high-profile CEOs like Elon Musk and Jensen Huang, reported Barron&#8217;s. Tuttle acknowledges the risk, noting that from a fundamental perspective, MicroStrategy&#8217;s valuation appears inflated.
Why It Matters: On Monday, MicroStrategy <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42159139/microstrategy-shares-rise-in-monday-pre-market-as-michael-saylor-reveals-mstr-generating-500m-daily-amid-bitcoins-surge">shares climbed 5.93% in pre-market </a>trading before <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42208320/michael-saylors-microstrategy-plunges-23-in-5-sessions-while-bitcoin-slips-under-6-gary-black-quips-dont-say-i-didnt-warn-you">closing the session</a> in the red. Over the weekend, Saylor revealed that the company is generating $500 million daily as Bitcoin edges closer to the $100,000 milestone.
According to <a href="http://pro.benzinga.com">Benzinga Pro data,</a> MicroStrategy has a consensus price target of $449.5 based on the ratings of 12 analysts. The high is $690 issued by BTIG on Dec. 11, 2023. The low is $140 issued by Jefferies on Nov. 10, 2022. The average price target of $563.33 between TD Cowen, Barclays, and Benchmark implies a 41.90% upside for MicroStrategy.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/24/11/42151809/michael-saylor-reveals-microstrategy-is-making-500m-a-day-with-bitcoin-may-very-well-be-the-most-profitable-company-in-the-us-growing-the-fastest-right-now?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Michael Saylor Reveals MicroStrategy Is &#8216;Making $500M A Day&#8217; With Bitcoin: &#8216;May Very Well Be The Most Profitable Company In The US Growing The Fastest Right Now&#8217;</a></li>
</ul>
Photo by JOCA_PH on Shutterstock

BITQ

STCE

MicroStrategy-Linked ETFs Skyrocket 400% This Year: Is This 'The Michael Saylor Effect'?

Donald Trump's election stoked anticipation of a looser regulatory landscape, benefiting the crypto ecosystem. 
Companies like MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), long synonymous with its audacious Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) strategy, is emerging as a key player in this evolving market. 
The company, which owns more than 150,000 Bitcoin, effectively operates as a leveraged bet on the cryptocurrency. Its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39045022/microstrategys-big-move-from-bitcoin-bet-to-russell-1000-inclusion">inclusion in equity indices</a> has quietly exposed countless institutional and retail investors to Bitcoin's wild price swings, even if they never intended to dabble in crypto.
As Bitcoin <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42107053/mstr-climbs-over-8-in-thursday-pre-market-as-bitcoin-approaches-98000-michael-saylors-company-has-more-than-doubled-the-investors-wealth-since-trumps-victory">rallied post-election</a> on optimism about regulatory clarity, MicroStrategy shares surged, highlighting the close correlation. 
Meanwhile, the broader crypto industry is buzzing with new ventures from Wall Street to Silicon Valley.
<h2 class="wp-block-heading">Crypto Initiatives Gain Traction</h2>
JPMorgan Chase is currently <a href="https://www.jpmorgan.com/insights/payments/payment-trends/introducing-kinexys">rebranding</a> its blockchain platform from Onyx to Kinexys, and aims to transform foreign exchange markets, according to Nikolaos Panigirtzoglou, an analyst with the firm. 
Goldman Sachs is also carving out its <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42047066/goldman-sachs-to-spin-out-digital-assets-platform-amid-blockchain-push">digital asset division</a> to expand private blockchain services. And BlackRock is doubling down with a <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39863203/blackrocks-buidl-tokenization-fund-hits-500m-in-assets-under-management">tokenized money market fund</a> on diverse blockchains, signaling a strategic shift.
These developments underline the growing institutional appetite for blockchain, from tokenized treasuries in El Salvador to cutting-edge trade finance solutions in Brazil.
Read Also: <a href="https://www.benzinga.com/news/events/24/11/42012198/a-new-era-how-tokenization-could-reduce-frictions-and-potentially-costs-in-finance">A New Era? How Tokenization Could &#8216;Reduce Frictions And Potentially Costs&#8217; In Finance</a>
<h2 class="wp-block-heading">MicroStrategy's Big Bet: A Tailwind Or A Trap?</h2>
MicroStrategy's role as a Bitcoin proxy has drawn mixed reactions. Some view it as a savvy way to capitalize on crypto's growth; others worry about overexposure to Bitcoin's volatility. Yet, as the Leveraged MicroStrategy ETF (Defiance Daily Target 2x Long MSTR ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mstx#NASDAQ">MSTX</a>) <a href="https://www.globenewswire.com/news-release/2024/11/12/2979763/0/en/MSTX-The-First-Leveraged-MicroStrategy-ETF-Surpasses-1-Billion.html">gains inflows</a> and demand for Bitcoin ETFs surges, the company's strategy looks increasingly prescient.
Panigirtzoglou, in a Thursday analyst report, highlighted a burgeoning trend: corporate treasuries are dipping their toes into Bitcoin as a reserve asset. If this is the start of a trend, MicroStrategy is ahead of the curve.
With Bitcoin at the heart of a post-election crypto surge, MicroStrategy's bold approach positions it as both a leader and a litmus test for the future of corporate crypto adoption. Whether it rides this wave to unprecedented highs or succumbs to volatility will depend as much on regulatory clarity as on the trajectory of Bitcoin itself.
In a rapidly transforming market, one thing is clear: MicroStrategy's &#8220;leveraged bet on Bitcoin&#8221; makes it a stock to watch in this new crypto-driven era.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/ipos/24/11/42068551/nexbridge-brings-bitcoin-tech-to-us-treasury-bills-tokenized-exposure-anyone">NexBridge Brings Bitcoin Tech To US Treasury Bills: Tokenized Exposure, Anyone?</a></li>
</ul>
Image: Shutterstock

Bitcoin Boom 2.0? MicroStrategy Gains Traction As 'Leveraged Bet' On Crypto Growth

Investors now have more ways to invest in or against MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), a software company and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) holder that has outperformed top stocks, asset types and index funds <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39817792/missed-out-on-nvidia-michael-saylor-says-get-on-the-bitcoin-standard-for-even-better-retur">in recent years.</a>
What Happened: REX Shares and Tuttle Capital Management launched two new ETFs Wednesday to give investors more ways to get exposure <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40878741/canaccord-lowers-microstrategy-price-target-to-173-cites-ongoing-bitcoin-accumulation">to MicroStrategy stock </a>with leveraged and inverse ETFs.
The two companies launched the T-REX 2X Long MSTR Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#BATS">MSTU</a>) and the T-REX 2X Inverse MSTR Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MSTZ#BATS">MSTZ</a>).
"These are the first ETFs to provide investors with 200% leveraged exposure and -200% inverse exposure to the daily price movement of MicroStrategy (MSTR), allowing traders to capitalize on MSTR's exposure to the Bitcoin market," the companies said.
The launch comes after <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40399008/mstx-becomes-first-single-stock-leveraged-etf-for-microstrategy-stock-offers-175-exposure">Defiance launched</a> a 1.75X long MicroStrategy ETF and 1.5X Short MicroStrategy ETF in August with the Defiance Daily Target 1.75X Long MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>) and Defiance Daily Target 1.5X Short MSTR ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMST#NASDAQ">SMST</a>) respectively.
With the new 2X ETFs, REX and Tuttle have pushed the envelope further.
"The 2X Leveraged and 2X Inverse MSTR ETFs offer traders unparalleled access to MicroStrategy's Bitcoin exposure, whether they're looking to amplify potential gains or hedge against market volatility. We're a product of our ability to redefine what's possible in the ETF industry," Tuttle Capital Management CEO Matthew Tuttle said.
REX Shares CEO Greg King said the new ETFs help provide tools to traders "to engage with a company that's pushing the boundaries in digital assets."
"MicroStrategy's forward-thinking approach presents a compelling opportunity for traders seeking additional ways to trade the stock," King added.
The launches follow several other leveraged and inverse ETFs from REX and Tuttle Capital. The two companies launched the T-REX 2X Long Bitcoin Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/BTCL#BATS">BTCL</a>) and T-REX 2X Inverse Bitcoin Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/BTCZ#BATS">BTCZ</a>) in July.
Read Also: <a href="https://www.benzinga.com/etfs/specialty-etfs/24/09/40802938/fund-manager-who-bet-against-jim-cramer-and-cathie-wood-has-new-anti-woke-etf-puts-profits-ah">Fund Manager Who Bet Against Jim Cramer And Cathie Wood Has New Anti-Woke ETF: &#8216;Puts Profits Ahead Of Politics, DEI &amp; ESG&#8217;</a>
Why It's Important: MicroStrategy has been a top-performing stock, gaining 94% year-to-date in 2024 and gaining 790% over the last five years.
The company has also seen shares highly volatile as related to the price of Bitcoin because the company is a large holder of the leading cryptocurrency.
MicroStrategy <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40857237/microstrategy-stock-climbs-after-bitcoin-purchase-heres-how-much-btc-michael-saylors-compa">recently announced it bought</a> $1.1 billion worth of Bitcoin bringing its total up to 244,800 Bitcoin. The company <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40919378/microstrategy-raises-875m-in-convertible-notes-plans-further-bitcoin-purchases">recently raised</a> over $800 million to redeem $500 million in senior secured notes and to buy additional Bitcoin.
MicroStrategy began buying Bitcoin in August 2020 and will continue to add more Bitcoin, as co-founder and Executive Chairman Michael Saylor <a href="https://www.benzinga.com/markets/cryptocurrency/22/06/27865236/exclusive-michael-saylors-microstrategy-is-married-to-bitcoin-everything-else-in-the-world">previously told Benzinga.</a>
"We have a simple strategy and our strategy is we just acquire Bitcoin, and we hold the Bitcoin," Saylor told Benzinga.
Saylor said he believes Bitcoin is the best asset in the world.
"Everything else in the world is inferior to Bitcoin. So, if you gave me $1 million and said what do you want to buy, I don't want to buy a sports team, I don't want to buy a building, I don't want to buy a company … all I want to buy is Bitcoin," Saylor previously told Benzinga.
Saylor also previously said that if people hate Bitcoin, they can short MicroStrategy and if they love Bitcoin they could buy the stock.
While investors have more ways to get Bitcoin exposure thanks to cryptocurrency exchanges and Bitcoin ETFs, MicroStrategy remains a popular option to get exposure.
With the new leveraged and inverse ETFs, investors have more ways to predict what will happen to MicroStrategy in terms of the stock going up or down.
Tuttle <a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36500461/exclusive-the-man-who-shorts-cathie-wood-and-jim-cramer-filed-for-new-bitcoin-etfs-why-lev">previously told Benzinga</a> that leveraged and inverse ETFs aren't for all investors, but have an important place in the market.
"They are a tool, just like stocks, bonds, ETFs, mutual funds, options, etc.," Tuttle told Benzinga. "Just like any tool some people will use them correctly and others won't."
Tuttle said that leveraged ETFs can be used by investors as an &#8220;alternative to options.&#8221;
&#8220;Unlike options, they can be traded after hours. They are very conducive to short-term trading strategies.&#8221;
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/09/40855829/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">Benzinga&#8217;s &#8216;Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a></li>
</ul>
Photo: Master Tux from Pixabay

BTCZ

ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF

MSTZ

MicroStrategy 2X Leveraged, Inverse ETFs Are Here, Offer 'Unparalleled Access To MicroStrategy's Bitcoin Exposure'

In an interview with crypto influencer Scott Melker, Bloomberg ETF analysts James Seyffart and Eric Balchunas highlighted both the challenges and successes of the new spot cryptocurrency ETFs.
What Happened: On the latest episode of Melker&#8217;s <a href="https://www.youtube.com/live/B2zIYA7dHHY">podcast</a>, Balchunas emphasized the resilience of Bitcoin ETF investors, noting, "99.5% of the assets stuck, even though there was a weekend where they woke up to a 15% downturn."
Regarding <a href="https://www.benzinga.com/money/best-spot-bitcoin-etfs">Bitcoin ETFs</a>, Seyffart reported impressive inflows: "They have like 17 and a half to 18 billion in inflows since they launched." He noted the ETFs now hold around 920,000 bitcoin, approaching a significant milestone. "Within a year, the US ETFs will have more Bitcoin than Satoshi," Balchunas added, highlighting the rapid institutional adoption.
The <a href="https://www.benzinga.com/money/what-is-ethereum-etf">Ethereum ETFs</a>, however, have faced challenges. Seyffart admitted, "They have negative flows since launch." Despite this, Balchunas provided context: "If you took the Bitcoin ETFs off the table and you looked at the launches this year, Ether would be number one by far at a billion dollars." He noted that the BlackRock Ethereum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETHA#NASDAQ">ETHA</a>) ranks 136 overall based on flows this year for all ETFs, placing it in the top 3%.
The analysts addressed the withdrawal of <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40470226/solana-etf-approval-in-2024-has-only-a-6-chance-a-snowballs-chance-in-hell-etf-analyst-say">Solana ETF</a> applications, viewing it as an early step in a longer process. Balchunas compared it to Bitcoin&#8217;s ETF journey, stating, "I would look at this as like the Winklevoss filing in 2013. These are the sort of like first shots you get." He suggested Solana ETFs might have better prospects under a different political administration or with the development of futures markets.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="300" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/29155259/905735A6-57D3-4874-9AA1-75D037842DB3-2.gif" alt="Benzinga Future of Digital Assets conference" class="wp-image-270548" /></figure>
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40470226/solana-etf-approval-in-2024-has-only-a-6-chance-a-snowballs-chance-in-hell-etf-analyst-say">Solana ETF Approval In 2024 Has Only A 6% Chance: &#8216;A Snowball&#8217;s Chance In Hell,&#8217; ETF Analyst Says</a>
Why It Matters: The analysts suggested patience with Ethereum ETFs, expecting a slower adoption curve compared to Bitcoin ETFs. Balchunas explained, "I always equate the Ether to silver to gold. They&#8217;ll have their own little market." He added, &#8220;It&#8217;s a long game. They&#8217;re off to a decent start."
The conversation also touched on the broader ETF market, highlighting record inflows across various sectors. Balchunas noted, &#8220;The breadth of flows beyond equities is a really promising sign for the industry.&#8221;
A particularly interesting development was the launch of highly volatile products like leveraged <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40399008/mstx-becomes-first-single-stock-leveraged-etf-for-microstrategy-stock-offers-175-exposure">MicroStrategy ETFs</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NASDAQ">MSTX</a>). Seyffart described one such product as "the most volatile ETF ever introduced in the United States,&#8221; with Balchunas adding, &#8220;I believe it&#8217;s the most immediately popular leveraged ETF ever to launch."
In conclusion, while acknowledging the current challenges, the analysts emphasized the need for patience and a broader perspective. Balchunas summarized, "Don&#8217;t worry. They had a lot of things going against them. They're doing okay despite it."
What&#8217;s Next: The influence of&nbsp;<a href="https://www.benzinga.com/money/is-bitcoin-a-good-investment" target="_blank" rel="noreferrer noopener">Bitcoin as an institutional asset class</a>&nbsp;is expected to be thoroughly explored at Benzinga&#8217;s upcoming&nbsp;<a href="https://www.benzinga.com/events/digital-assets/agenda/" target="_blank" rel="noreferrer noopener">Future of Digital Assets</a>&nbsp;event on Nov. 19.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/personal-finance/financial-advisors/24/08/40431425/morgan-stanley-becomes-first-wall-street-giant-to-let-advisors-recommend-bitc">Morgan Stanley Becomes First Wall Street Giant To Let Advisors Recommend Bitcoin ETFs</a></li>
</ul>
Image: Shutterstock

$ETH

$SOL

ETHA

Spot Bitcoin ETFs Will Soon Own More BTC Than Satoshi, Analysts Predict, But Another Fund Is The 'Most Volatile ETF Ever' In The US

In a wide-ranging discussion, crypto analyst Dylan LeClair broke down the innovative "<a href="https://www.benzinga.com/markets/cryptocurrency/20/12/18727657/microstrategy-just-cant-get-enough-of-bitcoin-to-now-raise-550m-in-debt-to-fund-purchase">Bitcoin strategy playbook</a>" pioneered by MicroStrategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) and is now being adopted even by soccer clubs.
What Happened: LeClair noted on the &#8220;What Bitcoin Did&#8221; <a href="https://www.youtube.com/watch?v=cZr7Xqo5E1I">podcast</a> that the strategy's core involved leveraging corporate finance tools to accumulate Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>). For public companies like MicroStrategy, this includes issuing convertible bonds and equity to purchase Bitcoin, effectively creating a "Bitcoin balance sheet."
"Sailor figured out how to give a bond market starved of yield exposure to Bitcoin volatility," LeClair noted. This allowed MicroStrategy to borrow at extremely low rates and use the proceeds to buy Bitcoin.
LeClair noted that while this strategy seemed risky to many, it has paid off handsomely. MicroStrategy&#8217;s market cap has grown from $1 billion to over $30 billion since implementing this approach.
LeClair believes more companies will adopt versions of this playbook as Bitcoin gains mainstream acceptance. However, he cautioned that fully embracing the strategy remains a &#8220;radical step&#8221; for most corporations at this stage.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/events/digital-assets/"><img loading="lazy" decoding="async" width="300" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/29155259/905735A6-57D3-4874-9AA1-75D037842DB3-2.gif" alt="Benzinga Future of Digital Assets conference" class="wp-image-270548" /></a></figure>
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40128336/microstrategy-stock-has-soared-1200-since-adding-bitcoin-to-its-balance-sheet-outpacing-nv">MicroStrategy Stock Has Soared 1200% Since Adding Bitcoin to Its Balance Sheet, Outpacing Nvidia&#8217;s Returns: What You Should Know</a>
Why It Matters: The strategy isn&#8217;t limited to public companies. Real Bedford FC, an 8th-tier English football club, has accumulated 82 Bitcoin using similar principles. Club chairman and podcast host Peter McCormack shared that this has led to unprecedented merchandise sales and sponsorship deals for a club at their level.
&#8220;We&#8217;re getting the same sponsorships that clubs get in the professional leagues because they want exposure to Bitcoiners,&#8221; McCormack said.
&#8220;We&#8217;re starting to see those trickle in,&#8221; LeClair concluded, &#8220;but I don&#8217;t think we&#8217;re at the point in time where that&#8217;s widely adopted yet.&#8221;
Recently, Defiance ETFs <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40399008/mstx-becomes-first-single-stock-leveraged-etf-for-microstrategy-stock-offers-175-exposure">launched MSTX</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSDTX#NASDAQ">MSDTX</a>), the first single-stock leveraged ETF for MicroStrategy in the U.S. 
What&#8217;s Next: The influence of&nbsp;<a href="https://www.benzinga.com/money/is-bitcoin-a-good-investment" target="_blank" rel="noreferrer noopener">Bitcoin as an institutional asset class</a>&nbsp;is expected to be thoroughly explored at Benzinga&#8217;s upcoming&nbsp;<a href="https://www.benzinga.com/events/digital-assets/agenda/" target="_blank" rel="noreferrer noopener">Future of Digital Assets</a>&nbsp;event on Nov. 19.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40399008/mstx-becomes-first-single-stock-leveraged-etf-for-microstrategy-stock-offers-175-exposure">MSTX Becomes First Single-Stock Leveraged ETF For MicroStrategy Stock, Offers 175% Exposure</a></li>
</ul>
Image: Shutterstock

MSDTX

MicroStrategy's Bitcoin 'Strategy Playbook' Explained: Will Others Follow This 'Radical Step'?

Mast Therapeutics Reports Possible Adjournment of Special Shareholder Meeting for Solicitation of Added Votes for Savara Deal

Mast Releases PR Asking For Stockholders To Vote For The Proposed Merger With Savara

Mast Therapeutics Offers Reminder Holders Vote for Proposed Deal with Savara

Mast Therapeutics Reports ISS, Glass Lewis Recommend Co. Holders Vote 'FOR' Proposed Merger, Related Proposals

Earnings

Mast Therapeutics Reports Q4 EPS $(0.02) vs $(0.04) Est., Sales $83K

Mast Therapeutics Reports Clinical Study Agreement With University Of Pittsburgh For AIR001 For Treatment Of P. aeruginosa Infection In Cystic Fibrosis

<h3>
	Macro Focus</h3>
<ul>
<li>
		Boston Federal Reserve Bank President Eric Rosengren is set to speak in Hartford, Conn at 9:00 a.m. ET.</li>
<li>
		The Labor Market Conditions Index for December is schedule for release at 10:00 a.m. ET.</li>
<li>
		The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.</li>
<li>
		The TD Ameritrade Investor Movement Index for December will be released at 12:30 p.m. ET.</li>
<li>
		Atlanta Federal Reserve Bank President Dennis Lockhart is set to speak at 12:40 p.m. ET.</li>
<li>
		Data on consumer credit for November will be released at 3:00 p.m. ET.</li>
</ul>
<h3>
	BZ News Desk Focus</h3>

	In what may be the calm before the storm on the earnings front, a pair of seemingly unrelated companies are set to post <a href="https://www.benzinga.com/news/earnings/17/01/8881194/are-low-earnings-expectations-for-delta-air-supervalu-an-early-warning-a">their latest results</a>. However, given that Wall Street analysts anticipate modest declines on the top and bottom lines for both Delta Air Lines (NYSE: <a class="ticker" href="/stock/dal#NYSE">DAL</a>) and SUPERVALU (NYSE: <a class="ticker" href="/stock/svu#NYSE">SVU</a>), investors may be wondering if this is a sign of things to come. Note that these results are for the period during which it was revealed that Warren Buffett had taken positions in Delta and other airlines, and the leading supermarket operator sold its Save-A-Lot business for $1.3 billion.
<h3>
	Sell-Side Themes</h3>

	Barclays initiated coverage on Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) and Dr. Pepper Snapple (NYSE:DPS all at Equal-Weight.

	JPMorgan upgraded Baidu (NASDAQ: <a class="ticker" href="/stock/bidu#NASDAQ">BIDU</a>) and JD.com (NASDAQ: <a class="ticker" href="/stock/jd#NASDAQ">JD</a>).
<h3>
	Sell-Side&#39;s Most Noteworthy Calls</h3>
<ul>
<li>
		UBS downgraded VMware (NYSE: <a class="ticker" href="/stock/vmw#NYSE">VMW</a>) to Neutral.</li>
<li>
		Mizuho downgraded Eagle Pharmaceuticals (NASDAQ: <a class="ticker" href="/stock/egrx#NASDAQ">EGRX</a>) to Underperform.</li>
<li>
		Barclays upgraded Clorox (NYSE: <a class="ticker" href="/stock/clx#NYSE">CLX</a>) to Equal-Weight.</li>
</ul>
<h3>
	Deal Talk</h3>

	Mast Therapeutics (NYSE: <a class="ticker" href="/stock/mstx#NYSE">MSTX</a>) and Savara announced Saturday that the two companies have entered into a definitive merger agreement, valuing Mast at $36.5 million. Current Mast stockholders will collectively own approximately 24 percent, and Savara stockholders will collectively own approximately 76 percent, of the combined company on a pro-forma basis.

	Merrimack Pharmaceuticals (NASDAQ: <a class="ticker" href="/stock/mack#NASDAQ">MACK</a>) confirmed a Reuters report Sunday that it has entered into a definitive asset purchase and sale agreement with Ipsen (OTC: <a class="ticker" href="/stock/ipsey#OTC">IPSEY</a>) sell its first commercial product ONIVYDE and its generic version of DOXIL in a transaction valued at up to $1.025 billion, plus up to $33 million in net milestone payments. The transaction is expected to be completed in Q1 of 2017.
<h3>
	In The News</h3>

	The <a href="http://www.benzinga.com/general/biotech/17/01/8879397/the-years-biggest-healthcare-conference-commences-this-week-heres-what">35th JPMorgan Chase Healthcare Conference</a> gets underway on January 9 and will go on until January 13. Touted as the life science industry&#39;s largest conferences of the year, the event showcases innovations of healthcare companies, which are out to scout for their next partners or investors.

	As the first major awards show since Donald Trump&#39;s election, the Golden Globes offered a <a href="http://www.cnn.com/2017/01/09/entertainment/golden-globes-review/">record-setting embrace</a> of the musical &quot;La La Land,&quot; but also a snapshot of the hostile atmosphere between the President-elect and the arts/entertainment.
<h3>
	Blogopshere</h3>

	&quot;The thing about <a href="http://thereformedbroker.com/2017/01/08/the-thing-about-dow-milestones/">major milestones</a> for the Dow Jones Industrial Average &ndash; whether we&rsquo;re talking about 2,000 or 20,000, is that they contain precisely zero useful information about what the future may hold. They&rsquo;re fun to talk about and to celebrate, but they work terribly as buying or selling indicators.&quot;
<h3>
	Trending</h3>

	SGYP JDST JNUG DUST NUGT UNH EXAS KO MCD T AAPL CMC AMGN

Global

Pre-Market Outlook

BIDU

EGRX

IPSEY

MACK

The Market In 5 Minutes: Earnings Results, Conferences, Trump And More

Defiance Daily Target 1.75x Long MSTR ETF

마이크로스트레티지(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) 주식은 비트코인(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) 움직임과 상반된 모습을 보였다. 이러한 추세는 11월에 마이크로스트레티지가 더 많은 0% 전환사채를 발행한 이후 더욱 뚜렷하게 나타났다.
무슨 일 있었나: 마이크로스트레티지 주가는 같은 기간 4.34% 하락에 그친 비트코인 가격보다 약 5배 더 많이 20.34% 하락했다.
코베이시 레터(Kobeissi Letter)의 소셜 플랫폼 엑스(X) 게시물에 따르면, 마이크로스트레티지 주가와 비트코인 간 차이가 점점 더 벌어지고 있다.
마이크로스트레티지는 상장 기업 중 비트코인을 가장 많이 보유하고 있으며, 총 공급량 2,100만 개 중 2.116%를 보유하며 그 규모는 411억 1,000만 달러 상당이다. 또한 마이크로스트레티지는 2024년에 더 많은 비트코인을 매입하기 위해 200억 달러의 부채를 조달했다.
또 다른 X 게시글은 이렇게 분석했다. "올해 대부분의 기간 동안 마이크로스트레티지와 비트코인 간의 상관관계는 엄청나게 강했지만, 지난 한 달 동안 특히 마이크로스트레티지가 막대한 부채를 떠안으면서 뭔가 바뀌기 시작했다. 그러자 마이크로스트레티지는 발행 가능 주식 수를 100억 주까지 늘릴 것을 제안했다.&#8221;
코베이시에 따르면, 마이크로스트레티지는 비트코인에 대한 레버리지 플레이 종목으로 간주되기 때문에 주식과 비트코인 성과 사이에 이러한 차이가 존재해서는 안 된다고 한다. 코베이시는 트리플 레버리지 S&amp;P 500 ETF의 예를 들면서 이러한 자산의 움직임이 어떻게 작동하는지 설명했다.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
If <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$MSTR</a> is really just a levered <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> play, why is there such a large divergence.
Here&#39;s the S&amp;P 500 ETF, <a href="https://twitter.com/search?q=%24SPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPY</a>, compared to a triple levered S&amp;P 500 ETF, <a href="https://twitter.com/search?q=%24SPXL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPXL</a>.
Since November 1st, <a href="https://twitter.com/search?q=%24SPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPY</a> is up ~3.5% while <a href="https://twitter.com/search?q=%24SPXL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPXL</a> is up ~9.8%.
This makes sense as it is TRIPLE levered. <a href="https://t.co/CiiX0puZ6N">pic.twitter.com/CiiX0puZ6N</a>
&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1873830243523584506?ref_src=twsrc%5Etfw">December 30, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
코베이시에 따르면 마이크로스트레티지의 모델은 먼저 "0% 전환사채를 통해 돈을 빌리고", "비트코인을 사서 가격을 끌어올리는 것"이다. 그런 다음 마이크로스트레티지는 신주를 프리미엄을 붙여 판매하고 그 수익금으로 더 많은 비트코인을 매입하며, 이 과정을 반복한다고 덧붙였다.
왜 중요한가: 앞서 12월 23일, 마이크로스트레티지는 액면가 주당 0.001달러인 클래스 A 보통주의 승인 주식 수를 330,000,000주에서 10,330,000주로, 우선주를 5,000,000주에서 1,005,000주로 늘리자는 제안을 내놓은 바 있다.
코베이시는 <a href="https://x.com/KobeissiLetter/status/1873830254877565388">이렇게 말했다</a>. "이 계획이 승인되면 약세론자들은 기존 주주들에게 매우 희석적인 조치라고 말할 것이다. 하지만 승인되지 않는다면 마이크로스트레티지는 계속해서 레버리지로 비트코인을 매입할 수 없게 된다.&#8221;
그러나 마이크로스트레티지의 공동 창업자인 마이클 세일러가 현재 46.8%의 의결권을 보유하고 있기 때문에 주식 수가 승인될 가능성은 높다.
<a href="https://www.benzinga.com/24/12/42667093/microstrategy-etfs-face-tracking-error-because-of-volatility-here-are-the-potential-risks-investors-face">마이크로스트레티지를 추종하는</a> 상장지수펀드에서도 급격한 편차가 목격되었는데, 이는 변동성이 큰 스왑과 옵션에 노출되어 있기 때문일 가능성이 높다.
올해 9월 18일에는 T-Rex 2X Long MSTR Daily Target ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSTU#NYSE">MSTU</a>)가 출시되었고 8월 14일에는 Defiance Daily Target 2x Long MSTR ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSTX#NYSE">MSTX</a>)가 출시되었다. 이 두 가지 펀드는 미국 상장 레버리지 ETF로 마이크로스트레티지 주식의 일일 수익률에 대해 2배의 수익을 제공한다.
주가 움직임: 마이크로스트레티지 주가는 월요일에 8.19% 이상 하락했고, 시간외 거래에서는 3.09% 더 하락하여 293.59달러를 기록했다. <a href=""https://www.benzinga.com/pro/"">벤징가 프로</a> 데이터에 따르면 연초 대비 나스닥 종합지수의 수익률 31.97%보다 훨씬 높은 342.15%의 수익률을 기록했다.
Benzinga가 <a href="https://www.benzinga.com/quote/MSTR/analyst-ratings">추적하는</a> 약 12명의 애널리스트는 주당 449.5달러의 목표주가와 매수 의견을 제시했다. 가장 최근 번스타인, TD코웬, 바클레이즈의 평가에 따르면 마이크로스트레티지 주식의 상승 여력은 86.20%이다.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/MSTR/analyst-ratings"><img loading="lazy" decoding="async" class="wp-image-712727" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest.png" sizes="(max-width: 943px) 100vw, 943px" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest.png 943w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest-300x112.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/31015247/MSTR-ANR-latest-768x287.png 768w" alt="" width="943" height="352" /></a></figure>
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Defiance Daily Target 2x Long MSTR ETF

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