MEI Pharma (MEIP) Surges 34.8% on Historic Litecoin Treasury Move—What’s Next for This Biotech Disruptor?

Summary
• MEI Pharma’s stock rockets 34.8% in a single trading day, surging from $4.5 to $6.07
• $100M private placement led by Litecoin creator Charlie Lee and GSR triggers frenzy
• 52-week high of $9.00 now within striking range as volatility hits 501% turnover spike
MEI Pharma (MEIP) is scripting a Wall Street anomaly as its shares surge 34.8% intraday on July 18, 2025. The biotech firm’s audacious $100M private placement to build a Litecoin treasury—backed by crypto pioneer Charlie Lee and market maker GSR—has ignited a speculative frenzy. With a 52-week high of $9.00 just 58% above current levels and a 501% spike in turnover, the stock is poised to test its breakout potential.

Crypto-Driven Treasury Strategy Sparks Record Volatility
MEI Pharma’s unprecedented 34.8% surge stems from its $100M private placement to acquire Litecoin as a primary treasury asset. The deal, led by Litecoin founder Charlie Lee and GSR, positions MEIP as the first publicly traded company to adopt LTC as a reserve asset. The transaction’s scale—selling 29.24M shares at $3.42—combined with Lee’s board appointment and GSR’s treasury management role, has triggered a speculative buying frenzy. Investors are pricing in both the immediate liquidity event and the long-term narrative of corporate crypto adoption.

Options Playbook for a Volatile Biotech Breakout
• MACD: 0.3608 (bullish), Signal Line: 0.1926, Histogram: 0.1682
• RSI: 80.47 (overbought), 200-day MA: 2.535 (below price)
• Bollinger Bands: Price at 3.849 (upper) vs. 2.724 (middle)
MEIP’s technicals scream short-term bullish momentum, with RSI in overbought territory and MACD diverging strongly. The 52-week high of $9.00 remains a critical psychological hurdle, but the 3.849 upper Bollinger Band suggests near-term resistance. Aggressive traders may target a breakout above $7.50, where the 200-day MA (2.7576) and key support levels conflate.

Top Option 1: MEIP20260320C7.5
• Type: Call, Strike: 7.5, Expire: 2026-03-20
• IV: 224.64% (high volatility), Leverage: 1.63%, Delta: 0.798 (high sensitivity), Theta: -0.0067 (moderate decay), Gamma: 0.0246 (responsive to price swings), Turnover: 1524 (liquid)
This call option offers explosive upside if MEIP breaks $7.50, leveraging high IV and delta for rapid premium appreciation. Projected payoff: $1.56 per share (5.2% gain) at a 5% price rise to $6.37.

Top Option 2: MEIP20260320P7.5
• Type: Put, Strike: 7.5, Expire: 2026-03-20
• IV: 150.86% (moderate volatility), Leverage: 1.68%, Delta: -0.312 (moderate bearish), Theta: -0.0045 (slow decay), Gamma: 0.0461 (price-responsive), Turnover: 1476 (liquid)
This put offers downside protection with a 1.68% leverage ratio. If MEIP consolidates below $7.50, the put’s negative delta could capitalize on volatility. Projected payoff: $1.43 per share at a 5% dip to $5.76.

Action Insight: For bulls, MEIP20260320C7.5 is a high-conviction play. Aggressive traders may also pair it with the put for a diagonal spread to hedge against volatility. Watch the $7.50 level—breakout above confirms a new bullish phase.

Backtest MEI Pharma Stock Performance
The backtest of MEIP's performance after an intraday surge of 35% shows mixed results. While the 3-Day win rate is 44.12%, the 10-Day win rate is slightly lower at 41.81%, and the 30-Day win rate is 46.05%, indicating a higher probability of positive returns in the short term. However, the average returns over the 3-Day, 10-Day, and 30-Day periods are negative, with -0.39%, -0.13%, and 0.05% respectively. The maximum return during the backtest period was 0.19%, which occurred on day 9, suggesting that while there is a chance of positive returns, they are modest and may not fully capitalize on the intraday surge.

MEI Pharma’s Crypto Bet: A $9.00 Run or Volatility Trap?
MEI Pharma’s historic Litecoin treasury move has redefined its valuation narrative, but sustainability depends on execution. The $9.00 52-week high remains a critical test, with RSI at overbought levels signaling potential pullbacks. Investors should monitor the $7.50 psychological threshold and the 200-day MA (2.535) for support. For context, sector leader Johnson & Johnson (JNJ) rose 0.67% today, underscoring MEIP’s outlier status. Act now: Buy the call option MEIP20260320C7.5 if $7.50 breaks, or short the put if the stock stalls below $5.50. The crypto-asset transition could be a generational play—if MEIP’s treasury strategy delivers.