Key Points:

• Defiance’s 2x long and 2x short ETFs experience a significant uptick in activity as MSTR’s shares declined to their 200-day average.
• MSTR, which is recognized as the largest publicly traded Bitcoin holder, witnessed a 55% drop in share price since its peak in November amid market volatility.

Defiance’s leveraged MSTR exchange-traded funds (ETFs) are seeing a dramatic increase in trading volume, particularly evident on Monday when it fell to its 200-day simple moving average. A record 24.33 million shares of the Defiance daily target 2x long MSTR ETF (ticker MSTX) exchanged hands, with the ETF experiencing a 32% decrease to $17.90, marking its lowest since September based on data from TradingView.

Meanwhile, the Defiance daily target 2x short MSTR ETF (SMST) has also seen soaring trading volumes, totaling 51.21 million, marking its peak since November 24.

Currently, MSTR has fallen 16.6% to meet its 200-day average, a descent revisiting late February lows of $231.62, as broader market pressures and fears of a U.S. recession intensify.

MSTR, or Strategy, is prominently featured as the world’s largest publicly traded Bitcoin holder with a stash of 499,096 BTC (valued at approximately $40.4 billion). The company began acquiring Bitcoin as a balance sheet asset in November and has aggressively pursued a strategy of funding these purchases through debt sales.

On Monday, the organization announced a $21 billion at-the-market (ATM) offering of its Series A preferred stock (STRK) aimed primarily at financing additional Bitcoin acquisitions.