This week, options trading activity around MicroStrategy and its variable-rate preferred stock has shifted dramatically towards bearish positions. On Friday, more than twice as many put options were traded compared to call options, with $250 million of the $335 million in premium linked to puts.
This surge in bearish sentiment comes as the price of bitcoin has fallen below $60,000 for the first time since late 2024, raising concerns about the viability of Saylor's strategies.
David Dziekanski, CEO of Quantify Funds, noted that there is now a higher risk factor associated with Michael Saylor, particularly after he shifted from promoting STRC as a stable alternative to money market funds to using cash reserves for bond buybacks and selling bitcoin. The preferred stock STRC has also seen a decline, falling 3.6% to $92, its lowest price since November of the previous year.
Additionally, the broader market environment, characterized by rising Treasury yields and increased odds of a rate hike, is further complicating the outlook for crypto-related investments. As a result, the market is pricing in significant risks for MicroStrategy and its associated financial instruments