MicroStrategy ETFs See Record Trading Amid Bitcoin Volatility

Defiance’s leveraged MicroStrategy (MSTR) ETFs witnessed record trading activity on Monday as the bitcoin-heavy firm’s shares plunged to their 200-day moving average.

The Defiance 2x Long MSTR ETF (MSTX) saw 24.33 million shares change hands, a record high, as its price dropped 32% to $17.90—its lowest since September. Meanwhile, the Defiance 2x Short MSTR ETF (SMST) recorded 51.21 million shares traded, the highest volume since November 24. Both funds track double the daily performance, long and short, of MSTR.

MicroStrategy’s stock tumbled 16.6% to $231.62, revisiting late-February lows, amid U.S. recession fears and a rising Japanese yen. The share price has fallen 55% since peaking at $543 in November.

As the world’s largest public bitcoin holder, MicroStrategy owns 499,096 BTC ($40.4 billion). The company, known for its aggressive bitcoin acquisition strategy, announced a $21 billion at-the-market (ATM) offering of its Series A preferred stock (STRK) on Monday. Proceeds will primarily fund new BTC purchases.

The surge in ETF trading activity signals heightened investor interest and volatility in MicroStrategy’s stock, driven by macroeconomic uncertainties and bitcoin price fluctuations.