"Bitcoin shadow stock" MSTR is extremely popular. Fund managers are calling it a "unique monster," while the etf is restricted in trading.
The fund manager of MSTR ETF MSTU, Tuttle, has always purchased derivative contracts through brokers. When he needed an exposure worth 0.1 billion US dollars, the three companies he collaborated with could only provide a total of 20 million US dollars. He had to turn to buying call options, and recently sometimes needs a 0.5 billion US dollar exposure.
MSTR CEO talks about being shorted: Citron doesn't understand where MSTR's premium over bitcoin comes from.
MSTR's director Michael Saylor stated that the company is making profits through volatile trades while also leveraging through ATM operations, so as long as bitcoin continues to rise, the company can still make money, which is an important profit point often overlooked by short sellers. "Based on an 80% bitcoin price difference, $3 billion in ATM financing can bring about $125 in earnings per share over 10 years."
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