TechFlow news, according to SoSoValue, MSTZ (2x inverse ETF shorting MSTR) saw a surge in trading volume on November 21, with daily turnover approaching $1.53 billion, compared to its previous average daily turnover of $84 million. Meanwhile, well-known short-selling firm Citron Research publicly announced its short position against MSTR (MicroStrategy), stating on social media that as bitcoin investment has become easier than ever—now accessible via ETFs, COIN, and HOOD—MSTR's trading volume has completely decoupled from BTC fundamentals. "While Citron remains bullish on Bitcoin, we have hedged our position by establishing a short position in MSTR."
According to SoSoValue analysts, MSTR previously served as one of the few compliant gateways for traditional capital to gain exposure to crypto, commanding a significant premium. At its peak, the company’s market capitalization was approximately 3.3 times the nominal value of its holdings of 331,200 bitcoins, representing a premium of over 230%. However, following news that SEC Chair Gary Gensler will step down on January 20, 2025, regulatory conditions are expected to remain favorable, offering investors more compliant avenues to access crypto. This would erode MSTR’s uniqueness, and the current shorting activity reflects anticipation of this loss of "uniqueness premium." Moreover, as mainstream capital increasingly enters the crypto market, if MSTR continues to decline while Bitcoin reaches new highs, meme sectors stagnate, and PayFi continues rising, it will underscore the growing importance of fundamental factors in crypto investing.
