MicroStrategy's stock has been a focal point in the market due to its aggressive Bitcoin acquisition strategy, which has significantly influenced the ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ). On December 23, 2024, MicroStrategy announced its latest Bitcoin purchase of 5,262 BTC, bringing its total holdings to 444,262 BTC. This acquisition, funded through share sales under the company's at-the-market program, coincided with MicroStrategy's inclusion in the Nasdaq 100 index. Despite this strategic move, MicroStrategy's stock experienced a decline of over 4% as markets opened, reflecting investor concerns over the company's heavy reliance on Bitcoin's volatile price movements.
Bitcoin's recent price volatility has further impacted MicroStrategy's stock performance. After reaching an all-time high of over $108,000, Bitcoin has faced a significant correction, dropping approximately 15% to around $95,000. This decline has been attributed to the Federal Reserve's shift towards a more restrictive monetary policy, which has created uncertainty in financial markets. Additionally, the speculative frenzy surrounding Bitcoin and crypto-related stocks has added to the volatility, with investors remaining cautious amid the holiday period. These factors have contributed to the downward pressure on MicroStrategy's stock, indirectly affecting the MSTZ ETF.
The MSTZ ETF rose to $20.66, marking a 7.29% increase from the previous close.