On Monday, Defiance’s leveraged Strategy (MSTR) exchange-traded funds (ETFs) experienced a significant uptick in trading activity as shares of the bitcoin-holding firm fell to their 200-day average. Investors reacted to a 32% drop in the price of the Defiance daily target 2x long MSTR ETF, trading under the ticker MSTX, which slid to $17.90, marking its lowest point since September, according to data from TradingView.
In a remarkable session, over 24.33 million shares of the MSTX ETF were exchanged. This ETF aims to deliver 200% of the daily percentage change in the share price of Strategy, formerly known as MicroStrategy. The shift in trading volume reflects a broader response in the market to ongoing economic uncertainties.
Conversely, trading volume for the Defiance daily target 2x short MSTR ETF (SMST) reached 51.21 million, the highest since November 24. This ETF seeks to yield investment results that correspond to 2 times the inverse of the daily performance of shares in Strategy. Currently, the net inflow figures for both funds on Monday are still awaited.
Shares of MSTR saw a 16.6% decline on Monday, returning to its 200-day simple moving average (SMA), reminiscent of the late February low of $231.62. The fall comes amid broader market anxiety, driven by fears of a U.S. recession and a sustained rise in the anti-risk Japanese yen. MSTR’s share price has plummeted 55% since reaching a peak of $543 on November 21.
Strategy holds the title of the world’s largest publicly listed bitcoin holder, with an impressive stash of 499,096 BTC valued at approximately $40.4 billion. The company began amassing bitcoin as a strategic asset in November and has since employed an aggressive accumulation strategy largely funded by debt sales.
On Monday, Strategy further announced a noteworthy $21 billion at-the-market (ATM) offering of its Series A preferred stock (STRK). The proceeds from this offering will predominantly be directed towards financing additional bitcoin purchases, signaling the company’s continuing commitment to expanding its crypto holdings amidst ongoing market challenges.
