Strategy's MSTR Options Interest Hits 71.9% of Market Cap, Towering Over Tech Giants

Strategy (MSTR) options open interest stood at 71.9% of the company's market capitalization as of July 2, according to a chart posted by executive chairman Michael Saylor on X. The figure dwarfs every member of the so-called Magnificent 7, with Tesla (TSLA) ranking closest at 15.8% and Meta (META) at 10.8%. Saylor labeled MSTR the 'MoST inteResting' stock on Wall Street, capitalizing select letters to spell out the company's ticker symbol.

The outsized derivatives footprint reflects how traders use MSTR as a leveraged proxy for Bitcoin exposure. The stock carries a beta of 3.54, per S&P Global data, meaning it amplifies Bitcoin's moves several times over. Strategy holds 847,363 BTC — more than 4% of circulating supply — acquired at a total cost of $64.1 billion, or an average of $75,646 per coin.

With Bitcoin trading near $61,760, that position is currently valued at approximately $54 billion, leaving the holdings underwater relative to their purchase price. The gap became publicly notable on June 26, when Strategy's equity valuation fell below the value of its Bitcoin holdings for the first time.

MSTR shares staged a volatile week. The stock surged 12.5% on Monday following the company's announcement of a capital management overhaul, then dropped 6.2% to $86.93 on Tuesday after TD Cowen cut its price target to $260 from $400. By Thursday, shares had climbed more than 7%, pushing back above $100 and pointing toward a potential July recovery that analysts say remains unconfirmed.

The new capital framework, announced June 29, sets aside a $2.55 billion cash reserve designed to cover 17.4 months of preferred dividends and interest obligations. It also authorizes up to $1.25 billion in Bitcoin sales and $2 billion in share buybacks. CEO Phong Le described the shift as a move from 'one-way capital issuance to active capital management.'

Wall Street's reaction was mixed but broadly cautious. Citi maintained a Buy rating while cutting its price target from $260 to $136, citing a revised 12-month Bitcoin forecast of $81,800 and noting the plan primarily buys time for Bitcoin to stabilize. TD Cowen and BTIG also retained Buy ratings while lowering their respective targets. Additionally, Rosen Law Firm has opened a securities investigation into Strategy.

Saylor separately reiterated a $100 price target for STRC, the company's preferred stock, which had hit a record low of $71.25 on June 26 before beginning to recover. MSTR itself has pulled back sharply from a 52-week high of $457.22, with the recent trough recorded at $81.81.

The stock's next major catalyst is the earnings report scheduled for July 30, which will serve as the first formal test of the revised capital playbook. Until then, sustained performance above the $60,000 Bitcoin threshold remains the key variable determining whether the July rebound translates into durable equity gains or represents a temporary relief rally.