MicroStrategy ETF 1.5x Leverage Product to Go Live as MSTR Stock Role in Speculative Bets Grows

Many Wall Street investors are beginning to see value in the shares of MicroStrategy Inc., the American business intelligence and software firm.

Wall Street investors appear to be showing increasing interest in MicroStrategy Inc. shares, with Bloomberg Senior ETF Analyst Eric Balchunas revealing the upcoming launch of a new MicroStrategy ETF product.

The product in question is the Defiance Daily Target 1.5X Short MSTR ETF, which Balchunas describes as an Exchange-Traded Fund incorporated in the United States.

The fund aims to achieve daily inverse investment results of -1.5 times or -150% of the daily percentage change in MicroStrategy stock. Being an actively managed ETF offering, the product will enable investors to gain maximum exposure to the performance of MSTR stock.

According to Balchunas, this ETF, upon launching, will become one of the most volatile ETFs in the industry. It will launch in August as the second ETF tracking MSTR stock. The first product launched by Defiance ETFs in this ETF inverse niche offered a 1.75X leverage.

MicroStrategy Plays A Key Role In Speculative Bets

This ETF offering from Defiance is set to take MicroStrategy’s role in speculative bets to a new level. As observed with the 1.75X leverage ETF, we can expect massive volatility to rock the MSTR 1.5x variant upon launch.

MicroStrategy ETF: A Product Of Bitcoin Exposure

Five years ago, MicroStrategy was known as a small business intelligence firm in the United States. However, things changed drastically for the company when Co-Founder and Chairman Michael Saylor decided to adopt a Bitcoin strategy in August 2020.

It is unclear how serious the firm was at the time, but they continued pursuing Bitcoin, buying the coin consistently Throughout the years. As of now, the firm boasts a total of over 226,000 BTC, as reported earlier by The Coin Republic.

An interesting trend we have observed with MicroStrategy is the raising of debt offerings, such as Convertible Senior Notes, to finance its Bitcoin purchases. One of the recent notes issues raked in $786 million, which was used to buy more coin.

The company also plans to launch a Decentralized Identity solution to further enhance the utility of the Bitcoin network. With no plans to slow down, MicroStrategy is looking to integrate further into the digital currency ecosystem.

Having stayed faithful to its conviction thus far, the Michael Saylor firm’s efforts have paid off in no small measure, with the firm’s holdings soaring to more than $15 billion, and its shares continuing to climb even after the recent 10-for-1 stock split.

Inspiring More Firms To Adopt Bitcoin Strategies

As MicroStrategy continues to make waves in the financial world with its Bitcoin strategy, other firms are taking notice and beginning to adopt similar tactics to build their reserves.

One company that has been making headlines for its Bitcoin strategy is Metaplanet, a Japanese firm that recently purchased an additional $3.4 million in the leading digital currency, bringing its total holdings to over 360 BTC. The company acquired the coin on August 20.

The logic behind these strategies is simple: with most fiat currencies currently in a state of devaluation, Bitcoin-like assets are presenting themselves as an attractive alternative, encouraging more companies to integrate into the digital currency ecosystem.

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