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Why is MSTZ Up Today After Strategy Rebranding

The ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) surged 6.75% to close at $16.93 on February 5th, as MicroStrategy Inc. (now rebranded as Strategy) faced a volatile trading session. The company's rebranding announcement, which included a new logo and a focus on Bitcoin and artificial intelligence, was overshadowed by its widening losses and missed estimates. Despite acquiring 10,107 Bitcoin this week, bringing its total holdings to 471,107 BTC, the market reacted negatively to the financial results. Mizuho Securities initiated coverage on Strategy with an "outperform" rating and a $515 price target, highlighting the company's aggressive Bitcoin acquisition strategy. However, concerns about the sustainability of its premium valuation relative to its Bitcoin holdings persist. The rebranding and financial results have created a mixed sentiment around Strategy, contributing to the inverse ETF's rise.