One of the biggest options market makers in America, Group One Trading, has a position to buy 1.3 million shares of MicroStrategy, a provider of business intelligence services (MSTR).
The shares, which account for 13.5% of MicroStrategy’s ownership, are valued at an estimated $247 million, compared to MSTR’s current pre-market share price of $190.
Group One is Exposed To BTC Inadvertently
Through its Twitter account, Defi Uncut recently highlighted the development. As news of the transaction spread, MSTR rose from a low of $172 yesterday to a recent high of $190. This represents a rise in the company’s valuation of 10.4% over the previous 24 hours.
Group One Trading, which was established in San Francisco in 1989, has developed to become one of the largest market makers in the US, supplying liquidity in the US equities markets for a number of assets. Due to MicroStrategy’s intimate ties to the asset, the business now has further indirect exposure to bitcoin as a result of its recent purchase of MSTR shares (BTC).
132,500 BTC Are Currently Held By MicroStrategy
Due to co-founder Michael Saylor’s constant promotion of the asset, MicroStrategy continues to be one of BTC’s major holders. According to current values, its a total holding of 132,500 BTC is worth $2.3 billion. In the month following its most recent Bitcoin acquisition, the business acquired up to 2,500 tokens.
MicroStrategy has been deeply entwined with the first-generation cryptocurrency, with $2.3 billion of its assets in BTC, allowing investors the chance to acquire indirect exposure to the asset class. As a result, the company’s shares move in tandem with BTC’s price fluctuations, underperforming for a time under the adverse market conditions last year.
After beginning the year at around $48,000, BTC plunged to $16,500 on December 31, 2022, causing a dramatic 74% decrease in MSTR. Despite an unrealized loss of $1.7 billion on the company’s BTC wager, it appears undeterred. In November of last year, MicroStrategy shot off speculations that it intended to sell off its Bitcoin holdings because of the persistent bear market.