GraniteShares' inverse Strategy ETF reached a record $114 per share on Tuesday as MSTR stock fell to its lowest level since September 2024.
The MSDD fund gained 13.5% in 2026 and surged 275% over the past year.
Strategy shares closed at $133.26 on Tuesday after hitting an intraday low of $126.74. The company holds 713,502 BTC purchased at an average price of $76,052 per coin. Bitcoin briefly traded below $75,000 last week.
The GraniteShares 2x Short MSTR Daily ETF delivers -200% of Strategy's daily performance before fees and decay effects. When MSTR drops 4.58%, the ETF gains roughly 9.16% in the same session.
What Happened
MSDD launched on January 10, 2025 as an actively managed fund for traders betting against Strategy's leveraged Bitcoin strategy. Defiance's competing SMST fund also reached an 11-month high of $113 on Tuesday.
Strategy recently acquired 855 BTC at an average price of $87,974 between late January and early February for approximately $75.3 million. The purchase preceded Bitcoin's sharp weekend selloff that sent prices below $75,000.
Strategy reports Q4 2025 earnings Thursday, February 5 at 5:00 PM EST. Under fair-value accounting rules adopted in 2025, the company must mark Bitcoin holdings to market each quarter, flowing unrealized gains and losses directly through earnings.
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Why It Matters
Strategy's stock has fallen more than 65% over six months and roughly 76% from its all-time high. The company's multiple to net asset value dropped to 1.08 according to official metrics.
Bitcoin's struggle to hold $76,000 turns the level into a balance-sheet inflection point. A sustained move below Strategy's average cost would push the treasury into clear unrealized losses and shift the earnings narrative away from long-term conviction.
Analysts note Strategy finances purchases through long-term debt with maturities years out, not short-term leverage. Forced liquidation would only occur if the company cannot service debt obligations.
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