Leveraged MSTR ETFs See Trading Frenzy as Stock Hits Critical Support

Investor interest in leveraged exchange-traded funds (ETFs) tied to Strategy (MSTR) spiked on Monday, as the company’s stock tested a key technical level, drawing both bullish and bearish bets.

The Defiance 2x Long MSTR ETF (MSTX) recorded its highest-ever trading volume, with 24.33 million shares changing hands. The fund, which aims to deliver twice MSTR’s daily performance, plunged 32% to $17.90—its lowest price since September, according to TradingView data.

Meanwhile, the Defiance 2x Short MSTR ETF (SMST) saw 51.21 million shares traded, the most since Nov. 24. This inverse ETF allows investors to profit from MSTR declines by offering twice the negative daily return of the stock.

MSTR dropped 16.6% on Monday, sliding to $231.62—its 200-day simple moving average (SMA)—as concerns over a potential U.S. recession and a stronger Japanese yen weighed on market sentiment. The stock has now plunged 55% from its November high of $543.

Despite the downturn, Strategy remains the largest corporate holder of bitcoin, with 499,096 BTC valued at approximately $40.4 billion. The company has aggressively expanded its bitcoin holdings by leveraging debt.

On Monday, Strategy announced a $21 billion at-the-market (ATM) stock offering, signaling plans to continue its BTC accumulation strategy.