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Why is MSTZ Up Today After Bitcoin Strategy

The ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) closed up 4.09% at $12.98 on January 21, as MicroStrategy's stock faced volatility following significant corporate actions. MicroStrategy announced a substantial $1.1 billion bitcoin purchase, increasing its holdings to 461,000 bitcoins, which has raised concerns about the company's aggressive bitcoin acquisition strategy. This move was financed through share issuance, a tactic that has drawn criticism for its reliance on debt and equity issuance. Additionally, MicroStrategy shareholders approved a 30-fold increase in authorized class A common shares to further fund bitcoin purchases, intensifying market scrutiny. The company's stock experienced a 7% drop in early trading before recovering slightly, reflecting investor apprehension over its financial maneuvers.