Shares in MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTCUSD), are jumping Monday in premarket trading, as the cryptocurrency trades near the $100,000 mark for the first time.
The T-Rex 2X Long MSTR Daily Target ETF has surged 800% since its launch, thanks to MicroStrategy's stock performance and a favorable market environment. MSTU's success is driven by fortunate timing, the emergence of single stock ETFs, and a significant Bitcoin rally influenced by a crypto-friendly Trump administration. Leveraged ETFs like MSTU can outperform their underlying assets significantly in low-volatility environments, as demonstrated by MSTU's more than 2x performance of MicroStrategy.
Shares of MicroStrategy (MSTR 6.19%) jumped 24.7% higher this week, according to data from S&P Global Market Intelligence. The Bitcoin investment company was helped by the cryptocurrency's price appreciation this week along with a convertible debt offering at a 0% interest rate.
The company has been raising money to buy the cryptocurrency.
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Most of the stock market's attention has been directed to cryptocurrency, the hottest and most popular niche of the technology sector today. The idea behind most decisions is that, as the price of Bitcoin keeps rallying near an all-time high of $100,000 per coin, most—if not all—of the names related to cryptocurrencies will rally along with Bitcoin.