The Defiance Daily Target 2X Long MSTR ETF (MSTX) saw a strong 5.24% surge in after-hours trading on Tuesday, following a major bitcoin purchase by MicroStrategy, the company whose stock is tracked by the leveraged ETF.
MicroStrategy announced that it had acquired an additional 2,530 bitcoins for around $243 million at an average price of $95,972 per coin. This purchase brings MicroStrategy's total bitcoin holdings to 450,000 bitcoins valued at approximately $41 billion based on current prices.
As a leveraged ETF that aims to provide 2x the daily returns of MicroStrategy's stock price, MSTX rallied sharply as investors reacted positively to the company's continued commitment to accumulating bitcoin as a reserve asset. MicroStrategy, led by CEO Michael Saylor, has been steadily adding to its bitcoin position over the past few years despite volatility in the crypto markets.
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