Strategy (MSTR) is currently experiencing its volatility carried out for 10 days lower, as Bitcoin BTC first added to its balance in 2020, according to Jeff Park, head of Alpha strategies in Bitwise Asset Management.
The volatility carried out refers to the real historical movement of the price of an asset for a specific period, in this case ten days. It is calculated using past price data and indicates how much the price has actually fluctuated, in opposition to how much it is expected to fluctuate in the future.
In addition to moderate historical prices changes, the implicit volatility of Mstr (IV) is currently 48.33 percent, which is among the lowest registered levels for actions in recent years. Implicit volatility reflects the market prognosis of the future volatility of an action, derived from the prices of the options. A lower IV suggests that the options market anticipates smaller price movements in the future. As a comparison, Mstr’s IV reached its maximum point in 225% in November 2024, during a strong demonstration in Bitcoin prices after the victory of the presidential elections of the United States of Donald Trump. At that time, Bitcoin quoted above $ 95,000 and the price of MSTR shares increased from $ 350 to a maximum of $ 525. From now on, Mstr shares are quoted to $ 367.
Mstr currently has 592,345 BTC, but last week he added only 245 BTC, marking his smallest weekly purchase since March. This deceleration in accumulation can suggest a saturation point, particularly as other public companies worldwide begin to adopt Bitcoin Treasury strategies.
In addition, capital flows seem to be turning from MSTR to smaller companies in Bitcoin, many of which are experiencing strong performance both in the price of shares and in the negotiation volume. Among them are the LQWD Technologies Corp in Canada, which has increased about three times in recent days in its BTC Treasury strategy.
In particular, this marks the fourth consecutive week in which MSTR has not used its market offer program in the market (ATM). As a result, the company now quotes a 1.83xa multiple its net asset value (NAV) in terms of Bitcoin, known as Mnav. This multiple is calculated by dividing the company’s business value by the market value of its Bitcoin holdings.
Is Mstr the news yesterday?
Directed by executive president Michael Saylor, the strategy has benefited significantly in the last years of the company’s state as a high volatility and high volatility proxy for Bitcoin. This high volatility caused MSTR to be particularly attractive to merchants and options of options, allowing higher profits both on the side and on the upward side compared to BTC.
However, as Mstr’s volatility is compressed, that appeal may decrease. With less price movement, merchants, investors and speculators, they could begin to reallocate capital to other more volatile shares or assets linked to Bitcoin that offer greater commercial opportunities.
In response, the strategy has also inclined to alternative financing strategies, including offers in the market linked to their perpetual favorite tickers, Strk and Strf. These fixed income products represent a strategic turn, but you still can’t see if they get significant traction.
