Put Option Demand on Bitcoin-Powered Strategy (MSTR) Hits 3-Month High as Stock Sinks 14%

This might come as a shock.

Strategy (MSTR), the world’s largest corporate holder of Bitcoin, is under pressure and options traders are bracing for more downside. The stock has dropped over 14% in the last two weeks, slipping below its 50-day simple moving average, a key technical level watched by many investors.

But instead of slowing down, Strategy is doing the opposite. The company just pulled off its biggest Bitcoin purchase of 2025, raising eyebrows in the middle of a selloff.

Let’s break down what’s really going on.

With MSTR sliding, options traders are moving fast to hedge against further losses. According to Market Chameleon, the put-call implied volatility skew rose to 3.6% on Wednesday, the highest level since April.

That means traders are now paying a premium to protect their downside. It’s a clear sign that sentiment is shifting, and many expect the pressure on Strategy’s stock to continue in the near term.

$2.5 Billion Raise, 21,021 BTC Bought

While the market turns cautious, Strategy just made its boldest move yet.

The company raised $2.5 billion by selling 28 million shares of its preferred stock, STRC, at $90 each. That’s now the largest public offering in the U.S. this year, beating out Circle’s $1 billion public debut in June.

The funds were used to buy 21,021 Bitcoin at an average price of $117,256 per coin, pushing Strategy’s total BTC holdings to 628,791 BTC, worth more than $74.7 billion.

“Even at $20K Bitcoin, We’re Fine”

As Bitcoin price volatility rattles the market, Strategy recently insisted it’s fully prepared.

“$BTC could crash to $20K and $MSTR would still have sufficient collateral to cover all liabilities. Model it yourself,” said Chaitanya Jain, Strategy’s Bitcoin strategy manager, responding to online concerns about overexposure.

With its BTC-backed debt instruments like STRK, STRF, and STRD, the company says it’s positioned for long-term survival and not just short-term gains.

Is MSTR’s Momentum Slowing?

So far, the strategy seems to be paying off and the company does not show signs of immense struggle. 

“Finance bros are becoming Bitcoiners,” Jain had said, pointing to a broader shift in traditional finance toward Bitcoin-backed strategies.

Strategy’s stock is under pressure, and traders are betting it could fall further. But the company isn’t slowing and is doubling down. All in on Bitcoin!

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