Is Stock Strategy an Alternative to Crypto Losses?

Why is Strategy Stock Preferred?

Strategy (MSTR) stock is being used by institutional crypto investors to hedge losses due to limited on-chain options. The value of the stock has recently fallen by 43%. This situation occurs during a period when investors are seeking more reliable protection methods in the market.

Tom Lee, founder of Bitmine Immersion, believes that MSTR stock acts as a sort of proxy in the market due to its liquidity and high Bitcoin (BTC) gains. This makes MSTR a preferred hedge tool among investors.

However, following the collapse in October, the liquidity in the crypto market continues to weaken. This has forced investors to take short positions in MSTR stock in the absence of solid crypto-based hedge tools.