Is Strategy Stock the Preferred Hedge Against Crypto Losses? Tom Lee Thinks So
Strategy (MSTR) has become the go-to tool for crypto investors trying to manage risk, according to Tom Lee, chairman and CEO of Bitmine, partly explaining its 43% drop over the past month.
“[Strategy] is probably the most important stock watch right now, because that is the bitcoin proxy, it’s the most liquid name,” Lee said in an interview with CNBC on Thursday.
With limited options to hedge losses directly in crypto markets, institutional traders have turned to shorting Strategy shares instead. The company holds nearly 650,000 bitcoin BTC$84,569.00, making its stock price closely tied to bitcoin’s performance.
“It seems to me that in the crypto world when they’re trying to hedge their loss in bitcoin and…
