Leverage Up on Saylor's MicroStrategy Stock

Plus Doodles launched their first single on Spotify.

TylerD

Aug 16, 2024

TylerD's Market Summary

GM!

Today's top news:

Crypto majors lag stocks, BTC at $58,500
New Defiance ETF offers levered access to MicroStrategy stock
Binance restarts India business in a sign of crypto return
Trump press conference sees $1.5M bet on Polymarket
Only 3 memes above $10M mc in green across chains

🤯 Defiance Launches Levered ETF for MicroStrategy Stock

Bullish on Michael Saylor and his company MicroStrategy?

Now you can go leveraged long, via a new ETF.

And demand is already pouring in.

What Happened?

Yesterday, Defiance launched the MSTX ETF product which gives investors access to levered MicroStrategy stock.

The ETF tracks the stock price and then uses debt to amplify the position, aiming for 175% exposure to the stock overall.

Typically an ETF product simply gives 1:1 exposure to an asset, which is what differentiates this ETF and makes it stand out at 1.75:1.

Defiance ETFs CEO Sylvia Jablonski commented:

"Given MicroStrategy’s inherent higher beta compared to Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the Bitcoin market within an ETF wrapper."

Market Response

The ETF saw $22M in volume in its first day, what looks to be a record for a Day One levered ETF.

MicroStrategy stock (MSTR) briefly popped 4% to $139 on market open but fell back to $132 on the day (+2%).

For perspective, MSTR is holding at a $25B market cap and is up 92% YTD.

Meanwhile, BTC actually fell 1% on the day.

Why It Matters

MSTR stock is a very interesting beta play to Bitcoin.

For those unfamiliar, Michael Saylor's company MicroStrategy is the largest publicly traded company which holds Bitcoin.

And they have a lot. Roughly 226,500 BTC worth $13.2B in their latest report.

Now the reason it's interesting - MSTR has been outperforming Bitcoin.

Looking at a few time horizons:

YTD: BTC +32%, MSTR +92%
1 year: BTC +100%, MSTR +257%
2 year: BTC +179%, MSTR +366%

So it is a high-performing beta.

And definitely an asset to consider for those with a decent risk appetite and a hunger for more Bitcoin exposure.

🚚 What else is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

ETH led NFT trading volume with $5.55M on the day; Solana was next with $2.7M, and then BTC with $1.6M
ETH NFT leaders were slightly red down 1-3%; Pudgy -3% at 9.24 ETH, BAYC -2% at 12.45 ETH, Azuki -1% at 4.34, MAYC +1% at 1.95
rektguy (+43%) and Genuine Undead (+40%) were other notable top movers
BTC NFT leaders were mixed; NodeMonkes +2% at 0.131 BTC, Puppets -1% at 0.088 BTC, Quantum Cats +8% at 0.269
The Runes leaders were mostly green; DOG -1% at $287M mc, RSIC +8% at $96M mc, PUPS +18% to $44M
Solana NFTs were mostly red; Mad Lads -2% at 51 SOL, SMB Gen 2 even at 20, DeGods +1% at 34.8, y00ts -9% at 6.6
rekt drinks introduced new daily claims and streaks, offering 50 daily DRANK points for users
Sotheby's announced a new Digital Art Day sale with over 60 lots including Fidenzas, Punks, Ringers, Squiggles and more
Doodles new single “Not In The Store” debuts on Spotify

💰 Token, Airdrop & Protocol Tracker

Here's a rundown of major token or airdrop news from the day:

Metastreet launched an Airdrop Pass which allows users to trade future airdrop yields, buy discounted NFTsa and more
The Pacmoon team delayed the launch of the ARMY token til next week
Privy enabled native bridging, allowing users of its embedded wallets to fund accounts with assets from any chain

🌎 Around Crypto and Web3

A few other Crypto and Web3 headlines that caught my eye:

Crypto majors are slightly red this AM; BTC -1% at $58,400; ETH -1% at $2,615, SOL +1% at $143
Memecoin majors are more red with DOGE -1%, PEPE -6%, WIF -6%, BONK -3%, MOG -7%
Binance restarted its India business in a sign that the country may be becoming more crypto-friendly again
The Grayscale SUI Trust went live for accredited investors

🚀 Memecoin Movers

$Fluffi (+89%, $12M market cap, SOL)
$SIGMA (+54%, $11M market cap, SOL)
$LOCKIN (+26%, $11M market cap, ETH)
PUPS (+15%, $43M market cap, BTC)
BILLION... (+8%, $26M market cap, BTC)

📈 NFT Floor Price Increase (ETH)

Genuine Undead (54%, 0.13 ETH Floor)
Kaiju Kingz (46%, 0.12 ETH)
Nakamigos (34%, 0.12 ETH)
rektguy (32%, 0.39 ETH)
LOVE Tennis Art (31%, 0.72 ETH)

🗓 Upcoming Mints and Events

Today is another slower day of mints with no real highlights.

Expect a quick summer weekend, though any launch or coin able to catch momentum should have ample opportunity to steal attention.

See the full list and dive in for more details with Swizzy's daily mint monitor.

Shroom Bits (10:00 a.m. ET)
Memes by 6529 (11:00 a.m. ET)
aurece vettier x Expanded Art (12:00 p.m. ET)
Fernando Cabral - El Silencio Que Habla (1:00 p.m. ET)

Enjoy this write-up and/or want to sponsor the Morning Minute? Follow along with me on Twitter @tyler_did_it or reach out via email to tyler.warner@luckytrader.com.