Strategy-related ETF shares drop by 50% amid bitcoin slump

The first cryptocurrency in terms of capitalization has fallen to its lowest level since last November

26.02.2025 - 12:55

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What’s new? Exchange-traded funds (ETFs) linked to Strategy (formerly MicroStrategy), which is the largest holder of bitcoin among publicly traded companies, have fallen nearly 50% in the past five days after BTC dipped below $87 000 on February 25. Leveraged funds under tickers MSTX and MTSU, whose shares traded above $43 and $9 last week, momentarily fell to $23,83 and $4,94, respectively.

Material by The Block

What else is known? The drop in the value of ETF shares came amid a general decline in the stock market after US President Donald Trump announced his intention to impose duties on Canada and Mexico. Bitcoin momentarily fell to $86 140, the lowest price since last November.

Leveraged ETFs, such as MSTX and MTSU, use derivatives and debt to boost the possible return of the specific asset they track. While these financial instruments offer the opportunity for higher returns, they also come with higher risks.

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Earlier, Strategy reported a Q4 2024 loss of $670,8 million, or $3,03 per share on a diluted basis. As of this writing, its securities under the ticker MSTR are trading at $250,51, having lost 11,4% overnight.

Last week, Strategy bought another 20 356 BTC worth $1,99 billion. In total, it holds 499 096 coins with a purchase price of $33,1 billion. Given the current asset price, its unrealized gain is $10,9 billion.

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