Many Wall Street investors are beginning to see value in the shares of MicroStrategy Inc., the American business intelligence and software firm. Bloomberg Senior ETF Analyst Eric Balchunas revealed that a new MicroStrategy ETF product is set to go live.
MicroStrategy ETF 1.5x Leverage Product
Per Balchunas’s update, the expected product is the Defiance Daily Target 1.5X Short MSTR ETF. This was described as an Exchange-Traded Fund incorporated in the United States.
The fund seeks daily inverse investment results of -1.5 times or -150% of the daily percentage change of MicroStrategy stock. As an actively managed ETF offering, the product will offer investors maximum exposure to the performance of MSTR stock.
As Balchunas noted, this ETF, when launched, will be one of the most volatile in the industry. It is set to launch in August as the second tracking MSTR stock. Defiance ETFs’ first product launched in this ETF inverse niche offered a 1.75X leverage.
MicroStrategy’s role in speculative bets is gradually growing. This ETF offering from Defiance is set to take it to a new level. As recorded by the 1.75X leverage ETF, massive volatility is expected to rock the MSTR 1.5x variant upon launch.
MicroStrategy ETF, a Product of Bitcoin Exposure
About 5 years ago, MicroStrategy was a relatively obscure business intelligence firm in the United States. Things turned around for the company when co-founder and Chairman Michael Saylor adopted a Bitcoin strategy in August 2020.
It remains to be seen how serious the firm was at the time. However, it kept up with its Bitcoin pursuit, buying the coin consistently. As of writing, the firm boasts a total of over 226,000 BTC, as reported earlier by The Coin Republic.
One intriguing trend with MicroStrategy is the raising of debt offerings like Convertible Senior Notes to finance its Bitcoin purchases. One of the recent notes issues raked in $786 million which it used in buying more coin.
With no plans to slow down, the company is looking to dive deeper into the digital currency ecosystem. It announced its plans to launch a Decentralized Identity solution to boost the utility of the Bitcoin network further.
Thus far, the Michael Saylor firm has stayed faithful to its conviction, and its efforts have paid off in no small measure. The firm’s holdings have soared to more than $15 billion, and its shares have continued to soar even after its recent 10-for-1 stock split.
Inspiration to More Firms
MicroStrategy is leaving a legacy that many are beginning to lean on. Its dogged embrace of Bitcoin has pushed firms like Metaplanet to adopt a similar strategy to build their reserves.
The logic is simple: Most fiat currencies are currently in a devaluation mode, making Bitcoin-like assets an attractive alternative. Japanese firm, Metaplanet has also remained faithful to its Bitcoin strategy. On August 20, the company bought an additional $3.4 million worth of coin, taking its total to more than 360 BTC.
