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

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

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.

Defiance Daily Target 1.75X Long MSTR ETF

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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

Defiance Daily Target 2x Long MSTR ETF

MADORO METALS CORP by MADORO METALS CORP.

Madoro Metals Corp

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 $20 billion of debt in 2024 to buy more coins.
Another post in the thread said, &#8220;For most of the year, the correlation between MicroStrategy and Bitcoin was incredibly strong. However, something began to shift over the last month, particularly as the company took on tons of debt. Then, MSTR suggested raising the authorized share count by 10 billion.&#8221;
According to Kobeissi, there shouldn&#8217;t exist such a divergence between the performance of the two assets as MSTR is considered a leveraged play on BTC. However, citing an example of a triple-levered S&amp;P 500 ETF, Kobeissi explains how the movement in such assets works.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">If <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$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>
</figure>
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>
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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.
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'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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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: 
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<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>
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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

New ETFs

BTCL

BTCZ

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

MSTZ

SMST

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>

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

The following are the M&amp;A deals, rumors and chatter circulating on Wall Street for Friday January 6 through Sunday January 8, 2017.

	Invitae Acquires AltaVoice for $5M in Stock at Closing Plus Up to $10M Based on Milestones

	The Deal:

	Invitae Corp (NYSE: <a class="ticker" href="/stock/nvta#NYSE">NVTA</a>) announced it has acquired AltaVoice, a privately owned, patient-centered data company with a global platform for collecting, curating, coordinating, and delivering safeguarded data from patients and clinicians. Invitae purchased all of AltaVoice&#39;s stock in exchange for $5 million in Invitae common stock issuable upon closing and up to an additional $10 million in Invitae common stock issuable based on certain future milestones.

	Invitae closed Friday at $8.54, down 1.61 percent.

	Mast Therapeutics, Savara Sign Merger Agreement; Deal Values Mast at $36.5M

	The Deal:

	Mast Therapeutics Inc (NYSE: <a class="ticker" href="/stock/mstx#NYSE">MSTX</a>) and Savara Inc. 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.

	Mast Therapeutics closed at $0.10 on Friday, up 3.02 percent.

	Merrimack Pharmaceuticals Confirms Plan to Sell ONIVYDE, Generic Version of DOXIL to Ipsen for Up to $1.025B

	The Deal:

	Merrimack Pharmaceuticals Inc (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.

	Merrimack closed at $3.60 on Friday, down 5.26 percent.

Rumors

NVTA

Wall Street's M&A Chatter From January 6-8

Mast Therapeutics, Inc. (NYSE: <a class="ticker" href="/stock/mstx#NYSE">MSTX</a>) and Savara Inc. (Savara) announced Saturday, that the two companies have entered into a definitive merger agreement, under which the stockholders of Savara would become the majority owners of Mast, and the operations of Mast and Savara would be combined. Subject to stockholder approval, the combined company will advance a pipeline of novel inhalation therapies for the treatment of diseases with significant unmet medical needs, featuring three product candidates, each in advanced clinical development.

	&nbsp;

	Under the terms of the merger agreement, pending stockholder approval of the transaction, Savara stockholders will receive newly issued shares of Mast common stock in exchange for their Savara stock. The exchange ratio was determined using a pre-transaction valuation of&nbsp;$115 million&nbsp;for Savara&#39;s business, based on its latest priced investment round and an acquisition of assets of Serendex Pharmaceuticals A/S, and&nbsp;$36.5 million&nbsp;for Mast&#39;s business, a premium to the 20-day volume weighted average share price of Mast. As a result, current Mast stockholders will collectively own approximately 24%, and Savara stockholders will collectively own approximately 76%, of the combined company on a pro-forma basis, subject to adjustment based on Mast&#39;s net cash balance and Mast&#39;s and Savara&#39;s capitalization at closing.

	&nbsp;

	The combined company, led by Savara&#39;s current management team, is expected to be named Savara Inc. and be headquartered in&nbsp;Austin, TX.&nbsp;&nbsp;Prior to closing, Mast will seek stockholder approval to conduct a reverse split of its outstanding shares to satisfy listing requirements of the NYSE MKT. The combined company is expected to trade on the NYSE MKT under a new ticker symbol. At closing, the combined company&#39;s board of directors is expected to consist of seven members, including five members of Savara&#39;s current board and two members of Mast&#39;s current board. The merger agreement has been unanimously approved by the board of directors of each company. The transaction is expected to close by the second quarter of 2017, subject to approvals by the stockholders of Mast and Savara, and other customary closing conditions.

	&nbsp;

	Mast&#39;s financial advisor in the transaction is Roth Capital Partners. Canaccord Genuity Inc. is acting as financial advisor to Savara. DLA Piper LLP (US) is serving as legal counsel to Mast and&nbsp;Wilson Sonsini Goodrich&nbsp;&amp; Rosati, P.C. is serving as legal counsel to Savara.

Mast Therapeutics, Savara Sign Merger Agreement; Deal Values Mast @$36.5M

Mast Therapeutics, Inc. (NYSE MKT: <a class="ticker" href="/stock/mstx#NYSE MKT">MSTX</a>) today reported that the first patient has been enrolled in an investigator-sponsored Phase 2 study of the Company's lead product candidate, AIR001, for the treatment of heart failure with preserved ejection fraction (HFpEF). The Inorganic Nitrite to Amplify the Benefits and Tolerability of Exercise Training (INABLE-TRAINING) in HFpEF study will evaluate AIR001's potential to improve the clinical responses to exercise training in individuals with HFpEF. The INABLE-TRAINING study is expected to enroll approximately 68 patients who will undergo 12 weeks of cardiac rehabilitation, including exercise training, and will be randomized to receive either AIR001 or placebo inhalation solution through the training period. The primary endpoint of the study will be the change in exercise capacity as measured by peak oxygen consumption. 
"We are pleased to report that patient enrollment is underway in this Phase 2 study of AIR001 for the treatment of HFpEF," stated Brian M. Culley, Chief Executive Officer of Mast Therapeutics, Inc. "There are now three Phase 2 studies actively enrolling patients to evaluate AIR001 for the treatment of HFpEF and we remain excited about its potential in this indication. Data from this and other studies will help guide our clinical and regulatory strategy in this area of significant unmet need. Currently, HFpEF affects approximately half of the more than 5 million people in the U.S. diagnosed with heart failure and has no proven effective treatment. Heart failure is a leading cause of morbidity and mortality among the elderly worldwide and is the primary diagnosis in more than 1 million hospitalizations each year, with medical costs projected to rise to more than $50 billion in the U.S. alone by 2030."

Press Releases

Mast Therapeutics Announces Initiation Of Patient Enrollment In Additional Phase 2 Study Of AIR001 For The Treatment Of Heart Failure With Preserved Ejection Fraction

Mast Therapeutics Reports Q3 EPS $(0.04) vs. Est. $(0.05), Rev. $45K

Last month's surge in MicroStrategy ($MSTR) shares created headaches for Matt Tuttle, who runs the T-Rex 2X Long MSTR Daily Target ETF ($MSTU). Acc...

How MicroStrategy (MSTR) ETFs Are Pushing Prime Brokers to Their Limits

Unusual total active option classes on open include: Ocean Power (OPTT), KULR Technology Group (KULR), NextDecade Corp (NEXT), Roku (ROKU), Defianc...

Unusually active option classes on open November 27th

Unusual total active option classes on open include: Nano X (NNOX), Quantumscape (QS), Planet Labs PBC (PL), Okta (OKTA), Dollar General (DG), Defi...

Unusually active option classes on open December 5th

The rising popularity of cryptocurrency and the company synonymous with aggressive Bitcoin (BTC-USD) buying, MicroStrategy ($MSTR), have triggered ...

MicroStrategy (NASDAQ:MSTR) Boom Sparks ETF Chaos

MSTX: Making An Ultra-Bullish Bet On MicroStrategy

MicroStrategy Is A Coiled Spring About To Jump Higher

David Einhorn's Greenlight Capital said in its quarterly letter that it established a new arbitrage position by shorting bitcoin-levered single-sto...

Greenlight owns MicroStrategy as arbitrage play on single-stock ETFs

Greenlight Capital Q4 2024 Letter

ETFs Have Come A Long Way

Memecoins: Anyone's Guess As To What Will Happen Next, But It Feels Like It's Going To Be Wild

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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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화요일, 12월 31, 2024

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