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Strategy Inc. (MSTR) shares have become the most discussed asset on Wall Street, surpassing the entire "Magnificent Seven" of IT giants in terms of market hype. At least, this is the picture of the market that company founder Michael Saylor is broadcasting on the social network X.
The entrepreneur published a chart with the caption "Which stock is the most interesting right now?" — and the question turned out to be rhetorical, because according to Saylor's chart, the ratio of open interest in derivatives to MSTR's equity capitalization reached an anomalous 71.9%.
Based on this data, MSTR is far ahead of all Big Tech names, leaving Tesla, Meta, Microsoft, Nvidia, Amazon, Google and Apple far behind.
Fine line between Wall Street buzz and Strategy's vulnerability
The gap is easy to explain, considering that MSTR has long ceased to be the stock of a software company and has become the main exchange-traded way to make a leveraged bet on Bitcoin. Traders are not trading Saylor's business, but the volatility of cryptocurrency through options and futures on his shares — hence the multiple gap in open interest to market cap ratio from any tech giant.
But behind the record interest there is also a worrying backdrop. Strategy holds 847,363 BTC on its balance sheet, almost 4% of the entire Bitcoin supply, bought at an average price of $75,646. With Bitcoin currently trading around $61,800, the company's paper loss already exceeds $11.7 billion, while its shares are trading roughly 30% below the value of its Bitcoin portfolio.
So the "most interesting stock" is not an exaggeration. The current buzz around MSTR reflects the market's reaction to the vulnerability of the company's Bitcoin strategy, as it now has to maneuver amid attempts to stabilize the prices of its preferred stocks, particularly the STRD and STRK series, with the former trading at 63% of its $100 par value and the latter at $89.
U.Today Editorial Team
Dan Burgin
