The T-Rex 2X Long MSTR Daily Target ETF (MSTU) surged 6.94% in pre-market trading on Tuesday, following a 3.3% gain for its underlying stock, MicroStrategy Inc. (MSTR).
The rally in MSTU, which aims to deliver twice the daily returns of MicroStrategy's stock, was fueled by investor optimism around the software company's continued Bitcoin accumulation strategy. According to the news report, MicroStrategy has been selling stock and using the proceeds to purchase Bitcoin for eight consecutive weeks.
Despite a recent decline in its weekly Bitcoin purchases, MicroStrategy remains the largest corporate holder of the cryptocurrency. As Bitcoin and other digital assets continue to gain mainstream acceptance, investors appear to be betting on the potential upside for companies like MicroStrategy that have made significant investments in this space.
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