MSTR Stock Serves as Primary Crypto Hedge as Stock Falls 43% in One Month

MicroStrategy has become the main hedging tool for crypto investors managing risk exposure, with its stock falling 43% over the past month, BitMine Chairman and CEO Tom Lee said in a CNBC interview on Thursday. The company, which holds nearly 650,000 BTC, functions as the most liquid proxy for bitcoin positions amid limited direct hedging options in crypto derivatives markets. Lee said institutional traders short MSTR stock to offset losses in bitcoin and ethereum holdings, as native crypto derivatives lack sufficient liquidity for large-scale hedging. He attributed part of the pressure to lingering effects from the Oct. 10 market collapse, which erased $20B in market value and damaged exchange liquidity.