MicroStrategy's stock drops 43% as institutional traders turn to it as a risk management tool, exposing deeper structural issues in the crypto market.

Saturday, Nov 22, 2025 11:17 pm ET1min read

Tom Lee, CEO of BitMine, states that MicroStrategy has become a preferred tool for crypto investors to manage risks due to its stock price being closely tied to Bitcoin's performance. Shorting MSTR has become a common practice to hedge losses in Bitcoin and Ethereum holdings, as native hedging tools lack liquidity for large funds. The phenomenon has revealed deeper structural issues in the crypto market, which remains fragile after the October 10 market crash.

MicroStrategy's stock drops 43% as institutional traders turn to it as a risk management tool, exposing deeper structural issues in the crypto market.

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