Strategy (MSTR) Reverses Interest with Apple and Nvidia... $11.7 Billion Loss Bomb Warning

▲ Strategy (MSTR), Apple (AAPL), Nvidia (NVDA)/AI-generated image

Strategy (MSTR) has surpassed Apple (AAPL) and Nvidia (NVDA) to become the hottest stock on Wall Street. However, at the heart of this fervor lies both the anticipation of Bitcoin (BTC) leverage betting and the burden of over $11.7 billion in unrealized losses.

According to crypto media outlet U.Today on July 2 (local time), Strategy founder Michael Saylor shared a chart via X (formerly Twitter) showing that MSTR is exhibiting higher market interest than all of the Magnificent Seven. Saylor presented the ratio of MSTR's derivatives open interest to its market capitalization as 71.9% along with the phrase, “What is the most interesting stock right now?”

This figure significantly surpasses that of major tech stocks such as Tesla (TSLA), Meta (META), Microsoft (MSFT), Nvidia, Amazon (AMZN), Google, and Apple. The outlet analyzed that this gap exists because MSTR is no longer merely a software company stock but has become a representative listed vehicle for leveraged betting on Bitcoin. Investors are reportedly trading cryptocurrency volatility through MSTR options and futures rather than focusing on Saylor's original business.

However, behind this record-breaking interest lies an unstable financial burden. Strategy currently holds 847,363 BTC, which accounts for nearly 4% of the total Bitcoin supply. While the average purchase price is $75,646, with Bitcoin trading at approximately $61,800, the company's book loss has already exceeded $11.7 billion.

The stock price is also trading at a level approximately 30% lower than the value of its held Bitcoin. The media pointed out that the interest surrounding MSTR is not an exaggeration but a result of the market reacting to the vulnerabilities exposed by Strategy's Bitcoin strategy. In particular, the company faces the challenge of stabilizing the prices of its preferred shares, STRD and STRK, with STRD trading at 63% of its $100 par value and STRK at $89.

MSTR has become a stock that attracts Wall Street's attention, but the essence of this interest is not a dazzling growth stock premium but a concentrated bet on Bitcoin price volatility. As derivatives open interest surged to 71.9% of market capitalization, market enthusiasm grew, but over $11.7 billion in unrealized losses and the burden of defending preferred share prices are directly testing Saylor's Bitcoin strategy. Ultimately, the explosive interest surrounding MSTR is seen as a high-risk Wall Street bet where both opportunity and risk have increased in the same direction.

[Article Key Summary]

-MSTR's ratio of derivatives open interest to market capitalization was confirmed at 71.9%. At the same time, it recorded higher market interest than the Magnificent Seven.

-Strategy holds 847,363 BTC, but due to the decline in Bitcoin prices, its book loss has exceeded $11.7 billion.

-The interest surrounding MSTR is a result of both demand for Bitcoin leverage betting and Strategy's financial vulnerabilities being reflected simultaneously.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*