TechFlow news, November 23 — According to CoinDesk, Tom Lee, Chairman of Bitmine Immersion, said that MicroStrategy (MSTR) has become the preferred instrument for institutional investors to hedge cryptocurrency risk, which is also the main reason its stock price has dropped 43% over the past month. Due to holding nearly 650,000 bitcoins, MicroStrategy is regarded as a liquid proxy for Bitcoin. Lee noted that after the October market crash, insufficient liquidity in the crypto derivatives market made it difficult for large investors to hedge risk directly in crypto markets, prompting them to use MSTR's highly liquid options chain for hedging. Analysts warn that although MicroStrategy's current financial condition remains stable, the company could face challenges related to its convertible bond options expiring in 18 months if pressure on the Bitcoin market persists.
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