Leveraged ETFs Explode as Strategy Inc's Bitcoin Holdings Fuel Rally
Strategy Inc's (NASDAQ:MSTR) stock has surged nearly 29% over the past five trading days, and the rally has been even more dramatic in the leveraged ETFs tied to the Bitcoin treasury company.
The T-Rex 2X Long MSTR Daily Target ETF (BATS:MSTU), GraniteShares 2x Long MSTR Daily ETF (NASDAQ:MSTP) and Defiance Daily Target 2X Long MSTR ETF (NASDAQ:MSTX) have each surged roughly 60% over the same five-day period.
The gains have come despite a sharp pullback Wednesday, when MSTR fell 3.07% to $162.20 after closing at $167.33 on Tuesday. Bitcoin also slipped, trading around $84,383 on Wednesday versus $86,172 a day earlier.
Strategy has been buying BTC, purchasing 950 coins for $75.7 million between Sep. 14 and Sep. 20, taking its holdings to 846,000 BTC. This move helped lift MSTR and other crypto-linked equities.