The T-Rex 2X Long MSTR Daily Target ETF (MSTU) witnessed a sharp pre-market plummet of 9.70% on Monday, following an announcement from MicroStrategy (MSTR), the company that MSTU is designed to track with leverage, regarding its Bitcoin investment performance for the year 2024.
MicroStrategy reported a Bitcoin yield of 74.1% for the full year 2024, a significant increase from the previous year's performance. While this could have been seen as positive news, the market seems to have reacted negatively, with MSTU experiencing a sharp decline in the pre-market session.
This negative reaction could be due to investors' concerns about the volatility associated with Bitcoin investments and the potential risks involved in leveraged products like MSTU, which aims to provide twice the daily return of MicroStrategy's stock.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.