Michael Saylor put Strategy (MSTR) up against Magnificent 7 (Mag 7) on July 2, calling his company a “MoST inteResting” stock on Wall Street as shares rebound from last week’s lows.
The comparison is based on positioning of derivatives rather than price performance. According to a chart shared by Saylor, the open interest of MSTR options is equal to 71.9% of the company’s market capitalization, which is several times higher than that of any member of the Mag 7.
Interest on MSTR options dwarfs Mag 7
Saylor’s post is capitalized in “MoST inteResting” to spell out the MSTR bar. His chart puts Tesla (TSLA) stock closest at 15.8% and Meta (META) at 10.8%, with the remaining Mag 7 members continuing lower. Notably, the numbers are a strategy-specific presentation and capture a single snapshot in time.
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The ratio shows how traders treat the stock. With a beta of 3.54, per S&P Global DataMSTR moves like a leveraged proxy Bitcoin bet worth $64 billion. Options remain the preferred vehicle for this exposure.
Latest MicroStrategy Deposit It shows 847,363 Bitcoin (BTC), more than 4% of the circulating supply. The company paid out $64.1 billion, with an average of $75,646 per coin.
However, with Bitcoin Trading near $61,760The center’s value is now about $54 billion. This comes just days after the strategy The valuation fell below the value of its Bitcoin holdings For the first time on June 26.
July’s rebound rides the new capital’s playbook
MSTR stock jumped 12.5% on Monday after its price was revealed Capital management reform. It then fell 6.2% to $86.93 on Tuesday, with TD Cowen lowering its target to $260 from $400.
Shares on Thursday rose more than 7%, actually rebounding above $1,009 to signal a July recovery that is still awaiting confirmation.
June 29 range It set aside a cash reserve of $2.55 billion, covering 17.4 months of preferred dividends and interest. It also allowed up to $1.25 billion in Bitcoin sales and $2 billion in buybacks. Company leadership described the change as deliberate.
“The strategy is evolving from a one-way capital issuance to active capital management,” Vuong Lu, chief strategy officer, said at a press conference. advertisement.
Meanwhile, Wall Street’s reaction embodies the tension. City It maintained a buy rating but lowered its price target from $260 to $136, saying the plan buys time for bitcoin to stabilize.
TD Cowen and BTIG also maintained buy ratings while lowering targets. Separately, Rosen Law Firm opened a Investigate securities in strategy.
Saylor repeated STRC target of $100 The preferred stock is recovering from its June 26 record low of $71.25.
Proponents read the dominance of options as conviction. In contrast, critics argue that the same leverage pulled the stock from its 52-week high of $457.22 to $81.81.
Whether derivatives enthusiasm will translate into lasting equity performance remains to be seen Bitcoin holds more than $60,000. The strategy reports earnings on July 30, the first test of the new playbook in action.
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