MSTR Experiences Lowest 10-Day Realized Volatility Since Bitcoin Holdings Began
Strategy (MSTR) is experiencing its lowest 10-day realized volatility since it began adding bitcoin to its balance sheet in 2020. This indicates minimal historical price fluctuations.
Key points include:
- MSTR’s implied volatility (IV) is at 48.33%, one of the lowest in recent years.
- The IV peaked at 225% in November 2024 during a bitcoin rally, with MSTR shares rising from $350 to $525; current trading price is $367.
- MSTR holds 592,345 BTC and added only 245 BTC last week, the smallest weekly increase since March.
- Capital flows are shifting towards smaller bitcoin-holding companies like LQWD Technologies Corp, which has seen significant share price increases.
- MSTR has not used its at-the-market equity offering for four consecutive weeks; it now trades at a 1.83x multiple to its net asset value (NAV) in bitcoin terms.
MSTR's reduced volatility may decrease its attractiveness to traders seeking high-risk opportunities, leading to potential capital reallocations towards more volatile assets. In response, MSTR is exploring alternative financing strategies through offerings linked to preferred stock tickers STRK and STRF.