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Summary T-Rex 2X Long MSTR Daily Target ETF (MSTU) receives a Sell rating due to amplified risks tied to MSTR's leveraged bitcoin exposure. MSTU is suitable only for daily trading; holding longer risks compounded losses, value decay, and unrecoverable capital erosion. MSTR's financial strain stems from declining bitcoin prices, high leverage (1.40x assets/equity), and $8.2b in debt, pressuring MSTU further. Potential catalysts for further downside include bitcoin volatility, debt servicing challenges, and risk of MSTR delisting from MSCI indices. The T-Rex 2X Long MSTR Daily Target ETF ( MSTU ) is a leveraged exchange-traded fund designed to provide investors with 2x the daily performance of Strategy ( MSTR ) shares. MSTU can be utilized by traders seeking to amplify their exposure to MSTR shares, though may be exposed to substantial volatility in doing so, making this strategy only appropriate for seasoned traders with strict risk management. Given the risks associated with the underlying MSTR shares, I am recommending MSTU with a Sell rating. MSTU should only be considered for daily exposure; investing in MSTU for longer than a single trading day may expose investors to significant risks, including compounded returns, value decay, and unrecoverable losses. About T-Rex 2X Long MSTR Daily Target ETF MSTU was launched by Rex Shares on September 18, 2024 on the CBOE Exchange. MSTU was designed to provide traders with 2x the daily performance of MSTR shares through the use of total return swaps [TRSs]. Using the TRSs, MSTU has the ability to leverage exposure to achieve the 2x daily performance target. MSTU takes both the payer and receiver position across its strategy, balancing exposure across both ends of the trade. As the receiver, MSTU will receive total return exposure to MSTR shares’ performance in exchange for a fixed rate. As the payer , MSTU will receive a fixed rate in exchange for MSTR shares’ performance. Swaps are generally settled daily in cash, exchanging the daily performance for the fixed rate. Corporate Filings MSTU shares have been under significant pressure in recent months as Strategy’s financial position weakens. The underlying cause of the financial challenges is the declining price of bitcoin. This has directly impacted Strategy given its leveraged bitcoin strategy, in which Strategy would issue debt in order to purchase additional bitcoin to be held in the treasury. Though the strategy has gained interest by retail investors as an alternative bitcoin investment vehicle, the strategy has since faced hardship with the price of bitcoin declining by -8% in the last year, which has pressured MSTR shares to decline by -50%. TradingView As a result of the significant selling in the last year, MSTU shares have declined by over -91%. For long-term investors, the price decline may have led to significant value decay and unsalvageable losses. TradingView As a result of the price decline in bitcoin, Strategy has been increasing its liquidity in order to remain in good standing for its preferred shares and debt. Accordingly, Strategy has increased its cash position to $2.19b. As of q3’25, Strategy had $8.2b in total debt on the balance sheet with a financial leverage ratio of 1.40x assets/equity. I believe the biggest challenge presented is that Strategy used conventional debt in order to gain leveraged bitcoin exposure as compared to using TRSs like leveraged funds. The critical challenge is that Strategy is investing in non-interest-bearing assets using debt with the intention of employing a buy-and-hold strategy on the bitcoin purchased. This means that Strategy will need to raise cash in order to cover interest and dividend payments on debt and preferred shares, adding certain risks to its leveraged bitcoin holdings, particularly during periods of market decline. MSTU shares have been reflective of the significant price decline faced by MSTR shares at an amplified rate. Looking at daily performance, MSTU shares may be set for further decline relative to MSTR shares. TradingView Despite the generally positive fund flows into MSTU, shares have faced a sharp decline as a result of pricing, resulting in a -$2b change in net assets in the last year. ETF Database ETF Database Taking into consideration fund flows in the last few months, investors may be expecting a reversal in the underlying share price. The challenge presented is that MSTR faces a number of factors that may influence the share price, including the price of bitcoin, remaining in good standing on its debt, and the possibility of MSTR being delisted from MSCI indices , all of which may pressure the share price. ETF Database Risks Related to MSTU MSTU is a leveraged ETF designed to provide traders with 2x the daily performance of MSTR shares, exposing traders to certain risks that should be considered prior to making a final investment decision. MSTU may expose investors to substantial risk related to the price of bitcoin, particularly when considering MSTR shares as a leveraged bitcoin strategy. MSTU employs leverage that may result in enhanced exposure to MSTR shares and may result in compounded returns, value decay, and significant losses if held for longer than a single trading day. Actively trading MSTU may expose investors to higher capital gains taxes, trading fees, and management fees; MSTU charges a 105bps expense ratio and has an average bid/ask spread of 0.11%. You can review additional risks here and the SEC bulletin here . Given the substantial risks associated with trading leveraged funds, investors should adhere to strict risk management policies, particularly when it comes to sell discipline. Final Thoughts MSTR shares may face additional selling pressure with operational and stock-related catalysts coming into play, particularly related to making interest and dividend payments on its debt and preferred shares, the price of bitcoin, and the possibility of being delisted from MSCI indices. Given these risks, as well as the substantial exposure gained while trading leveraged funds, I am recommending MSTU with a Sell rating.

Bitcoin mining has become harder and less profitable, yet the stocks of companies built around it keep rising, even as crypto prices slide. The reason sits in plain sight. These companies own large data centers that burn huge amounts of power, and those sites are now in demand for computer work tied to artificial intelligence. Competition has crushed margins across mining operations, while the cost of electricity and equipment keeps climbing. At the same time, big tech groups need ready-to-use sites with land, cooling, and long-term power contracts. That overlap has pushed several miners to rent out their facilities to Alphabet, Amazon, Meta, Microsoft, and other hyperscalers chasing more computing capacity. Data centers draw tech giants as miners chase new revenue Bitcoin mining once stood on its own as a high-return business that relied on raw computing force to solve equations and release new coins. That edge faded as more players joined and rewards tightened. Just as that slowdown set in, demand for AI-related computing surged and pulled attention toward assets miners already controlled. These conversions are not simple.AI workloads need stronger cooling and faster networks. They also require swapping Bitcoin machines for graphics processing units. Still, signing leases with miners lets tech companies grow faster and spend less than building new sites from scratch. Many miners continue Bitcoin work while bringing in longer contracts from customers with deep pockets. “The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine,” said Adam Sullivan, chief executive of Core Scientific. Adam led the company toward AI-focused centers while keeping some Bitcoin activity running. That move has lifted share prices across the sector. The CoinShares Bitcoin Mining ETF is up about 90% this year, even as Bitcoin erased its gains for 2025. The fund holds companies such as Cipher Mining and IREN, both of which jumped after signing long-term deals with Amazon and Microsoft. Core Scientific’s shares quadrupled in 2024 after its first AI contract in February and are up another 10% this year. The company plans to exit bitcoin mining by 2028. Power flexibility keeps some miners tied to Bitcoin operations For other companies, AI plans act as protection against the limits baked into mining itself. Bitcoin supply is capped at 21 million coins, and the halving every four years cuts rewards again. Price swings add more pressure, making steady income harder to find. CleanSpark raised $1.15 billion to expand data-center infrastructure but kept its Bitcoin mining business intact. One reason lies with utilities. Power companies want partners that can quickly reduce usage when grids strain. Bitcoin sites can shut down fast, something always-on AI centers cannot do. Matthew Schultz, chief executive of CleanSpark, explained the appeal. “If and when there’s a weather-related event or anything else, we can curtail a portion of the portfolio to help stabilize the grid,” Matthew said. “And what we found is the demand for that type of load is much greater.” CleanSpark shares are up 25% this year. Not every miner fits the bill. Moving from Bitcoin mining to high-performance computing costs serious money, and upgrades run deep. “Bitcoin miners have an advantage in understanding power and its use but there’s a night and day difference between mining and HPC support,” said Kevin Dede, senior research analyst at H.C. Wainwright. “It’s more than an order of magnitude of intensity and complexity.” The push into AI also carries risk. Some investors worry valuations are stretched, and spending is heavy. Another outcome could hit closer to home. As more companies redirect capacity, U.S. Bitcoin mining output could fall and move overseas, clashing with President Trump’s goal of keeping Bitcoin “mined, minted and made in the United States.” Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.

Oracle, Meta, xAI, and CoreWeave are pushing more than $120 billion of AI data center spending off their balance sheets, using Wall Street money and complex legal structures to fund the infrastructure behind artificial intelligence. The financing is flowing through special purpose vehicles, known as SPVs, allowing the companies to secure computing power while keeping large debts out of their core financial statements. The deals have pulled in private capital from Pimco, BlackRock, Apollo, Blue Owl Capital, and major US banks, including JPMorgan, according to the Financial Times. The money sits inside SPVs that own land, buildings, and chips, so the tech companies are leasing the assets. Private capital absorbs massive AI data center borrowing Silicon Valley companies once relied on cash and low debt, but that changed as the race for AI computing power intensified and building data centers now requires tens of billions of dollars at a time. Meta set the pace in October with a $30 billion private credit deal for its planned Hyperion data center in Louisiana , putting the project inside an SPV called Beignet Investor, created with Blue Owl Capital. The investment vehicle raised about $27 billion in loans from Pimco, BlackRock, Apollo, and other investors, alongside $3 billion in equity from Blue Owl. None of the debt appeared on Meta’s balance sheet, and that allowed the company raise another $30 billion in corporate bonds in November. Meanwhile, Oracle leases compute to OpenAI, so it has partnered with builders and financiers such as Crusoe, Vantage, Related Digital, and Blue Owl to develop multiple data centers, each owned by separate SPVs. One vehicle backing the Abilene, Texas facility received about $13 billion from Blue Owl and JPMorgan, including $10 billion in debt. Other arrangements include a $38 billion debt package for sites in Texas and Wisconsin and an $18 billion loan for a New Mexico location. In every case, Oracle leases the facilities while lenders hold claims on the assets. Risk spreads across Wall Street as SPVs multiply Investors often believe the real risk is still with the tech company leasing the site, as exemplified by Meta’s Beignet Investor deal. Meta owns 20% of the SPV and provided a residual value guarantee, meaning it would repay investors if the data center value drops below a set level at lease end and Meta does not renew. Elon Musk’s xAI is pursuing a similar approach. The startup is raising $20 billion, including as much as $12.5 billion in debt. An SPV will use the funds to buy Nvidia graphics processing units and lease them back to xAI. CoreWeave has followed the same path. In March, the company created an SPV to meet an $11.9 billion contract to supply computing power to OpenAI. In July, it borrowed $2.6 billion to finance those obligations. Private capital interest remains strong. UBS said tech companies had borrowed about $450 billion from private funds by early 2025, up $100 billion from the prior year. Around $125 billion flowed into project finance deals this year alone. Data center construction now depends heavily on the $1.7 trillion private credit market, where concerns around valuation, illiquidity, and borrower concentration are growing. But the risk is getting bigger as more companies adopt the same structures, because OpenAI alone has committed more than $1.4 trillion in long-term computing contracts across the industry. Google, Microsoft, and Amazon have avoided SPVs so far, funding data centers with cash and traditional bonds. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.

Amplify ETFs has launched two new funds targeting investors seeking to tap into the technology behind stablecoins and tokenization, two rapidly growing sectors of the digital finance industry. *]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:479afcf8-8f70-4f21-93ba-ff97999efdbe-40" data-testid="conversation-turn-20" data-scroll-anchor="true" data-turn="assistant"> The offerings include the Amplify Stablecoin Technology ETF (STBQ) and the Amplify Tokenization Technology ETF (TKNQ), among the first ETFs specifically focused on these segments of the blockchain market. *]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:479afcf8-8f70-4f21-93ba-ff97999efdbe-41" data-testid="conversation-turn-22" data-scroll-anchor="true" data-turn="assistant"> Investors are showing strong interest, as both funds tap into themes appealing to both institutional and retail audiences. STBQ and TKNQ launch amid clearer regulatory guidance and growing demand for thematic exposure beyond traditional cryptocurrencies, such as Bitcoin and Ethereum. ETFs broaden access to booming crypto infrastructure The Stablecoin Technology ETF (STBQ) is designed to track the MarketVector Stablecoin Technology Index, which comprises approximately 24 assets spanning equities and crypto-linked exposure related to stablecoin infrastructure and applications. Stablecoins are blockchain-based tokens typically backed by traditional assets, which limits their price swings. Their relative stability supports high-volume transactions, making them a key component of trading, payments, and decentralized finance (DeFi). STBQ targets companies and digital assets that generate a substantial share of their revenue from payment technology, digital asset infrastructure, and trading platforms, enabling investors to trace the firms at the center of stablecoin adoption, Amplify notes. Structured as a diversified portfolio, the fund offers growth potential in numerous new asset front-runner companies that are also leveraging blockchain-based solutions to augment exchange traffic throughput. Both ETFs have an expense ratio of around 0.69%, which is typical for other thematic and niche investments. Innovation is powered by regulation and market movements There’s a bigger game going on with the timing of these launches, and it’s as much a commentary on the timing of when regulations and markets are changing more generally. In the US, regulators have taken significant steps to address the treatment of digital assets, particularly stablecoins, which has given institutions the confidence they need to get involved in the space. It describes stablecoins laws, such as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, and EU regulatory systems, like MiCA , as supporting factors for industry growth. That regulatory clarity has led legacy financial companies — from major payment networks to asset managers — to develop their digital asset services. Companies like Visa , Mastercard, Circle, and PayPal — all connected to payments or stablecoin work — would be part of the universe STBQ is working to track. Similarly, large financial institutions and exchanges, such as BlackRock, JPMorgan, Citigroup, and Nasdaq, have repositioned themselves in tokenization projects over the past few years, indicating an interest in a broader market for digital assets that can represent real assets. The newly released ETFs are among Amplify’s recent lineup entries as it seeks to expand the categories of products that investors can select in pursuit of emerging trends in digital finance. As international trading systems utilize blockchain for payments and tokenization, as well as for investing in financial infrastructure, STBQ and TKNQ could attract those looking to capitalize on long-term trends disrupting conventional trading in traditional funds. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

Amplify has launched two new ETFs: the Stablecoin Technology ETF (STBQ) and Tokenization Technology ETF (TKNQ), tracking companies building infrastructure for stablecoins and tokenization in digital finance. These funds blend traditional stocks with blockchain innovations, offering investors diversified exposure amid growing regulatory support. STBQ focuses on stablecoin infrastructure: It invests in firms like Visa, Circle, [...]

MicroStrategy stock is currently trading near $165, influenced by structural compression in price patterns, neutral funding rates indicating balanced leverage, and declining volatility that points to a consolidation phase rather than immediate directional moves. This setup suggests stability as buyers defend key support levels. MicroStrategy's price structure shows compression with contracting volatility, where buyers actively [...]

The S&P 500 has reached new all-time highs in 2025, driven by strong earnings and policy stability, while the crypto market struggles to surpass $3 trillion in capitalization. This S&P 500 crypto divergence highlights differing investor sentiments, with equities showing robust momentum and digital assets facing liquidity challenges, according to TradingView data. S&P 500 surges [...]

Uganda has placed strict restrictions on Starlink satellite internet technology just weeks before the country’s general elections. Ugandan citizens now require authorization from General Muhoozi Kainerugaba, the Chief of Defence Forces and the son of President Yoweri Museveni, to import Starlink’s technology. The direct-to-satellite internet service that Elon Musk’s SpaceX operates has the antidote to the problem that traditional options have, being that they can be easily shut down. Starlink , on the other hand, would be able to connect users throughout sensitive periods like Uganda’s elections, where authorities have historically disabled services. Can Ugandans use Starlink? According to an official memorandum from the Uganda Revenue Authority (URA), anyone wishing to import Starlink equipment must now obtain authorization from General Muhoozi Kainerugaba, the Chief of Defence Forces and the son of President Yoweri Museveni. The restriction took effect immediately and applies to all of Starlink’s technology, including communication equipment and associated components. Customs state that any import declaration for these items must present a clearance letter from the UPDF Chief of Defence Forces. Robert Kyagulanyi, known as Bobi Wine, said in a social media post that the government’s decision is evidence that the regime is “gripped by fear.” He questioned why the government would require clearance from the long-time president’s son for Starlink imports. “If they’re not planning mischief (electoral fraud),” he wrote. “Why are they so scared of people accessing interest during the electoral process?” CNN international correspondent Larry Madowo noted that the ban comes just weeks before the election and pointed out the government’s track record of shutting down the internet during polls. During Uganda’s 2021 general elections, the internet was shut down for several days, resulting in severely limited communication and information about the electoral process. With Starlink , Ugandans could theoretically maintain internet connectivity even if traditional internet service providers are ordered to shut down their services. This would allow opposition groups, civil society organizations, and journalists to continue documenting and sharing information about the electoral process. What are the international implications? Access Now and similar groups have expressed concerns that these types of restrictions are frequently used to suppress “unfavorable” opinions and control information during periods of political tension. Robert Kalumba, an official from the Uganda Revenue Authority, who defended the restriction, said the complaints from the public are a “storm in a teacup.” His argument is that security clearance for satellite technology is a standard global practice, but he failed to acknowledge the sensitive timing of the restriction and also the specific requirement for personal authorization from General Kainerugaba. General Muhoozi Kainerugaba is a known controversial figure who has been positioned as a potential successor to his father. Several countries have implemented various forms of internet restrictions during elections and protests, and satellite internet technology like Starlink represents a solution in this ongoing struggle between governments and citizens. Get $50 free to trade crypto when you sign up to Bybit now

One of China’s largest short video platforms, Kuaishou, suffered a setback after a cyberattack incident disrupted livestream service, exposing its users to explicit content. The company made a report to the police following the breach that occurred on Monday evening, an incident that spread across social media, attracting the attention of investors, regulators, and the wider tech industry. Kuaishou’s users shocked at the data breach According to reports, the company indicated that its livestream platform was flooded with explicit content, leaving users in shock and questioning how such prohibited data managed to get through all of their safeguards. Some users stated they had never seen that type of content before on the app. Many users shared screenshots and video clips of what occurred on social media, increasing the public’s concern until moderators were able to intervene and address the situation and remove the affected Kuaishou livestream accounts early Tuesday morning. The social media company claimed to have contained the issue and had reported it to the police and other pertinent agencies while simultaneously working to suspend the perpetrating accounts and restore proper functionality within the Kuaishou app. In a public statement issued on Tuesday, Kuaishou stated that the live broadcast function of their platform was a point of concern, adding that they invoked emergency procedures as a result. The company further committed to eradicating illegal and damaging content from the platform, as well as promising to cooperate with law enforcement investigations into the incident. Experts on cybersecurity have highlighted that the scale of these attacks is indicative of how the methods used have changed. One expert cited by SMP said that now cybercriminals can create and manage thousands of fake accounts at once, given the availability of automated tools. Resultantly, this makes it difficult for human reviewers to act quickly enough. “This type of attack will overwhelm traditional methods of verification, because everything occurs nearly instantaneously,” the individual said. The expert warned that many platforms still depend on manual controls excessively. Another analyst noted that companies need to focus internally as well, because weaknesses regarding internal access will cause greater vulnerabilities to external threats. The market negatively responded to the cyberattack As these services were progressively restored, the market was immediately affected by this incident. On Tuesday, Kuaishou shares fell considerably to their lowest point in nearly five weeks, following the announcement on the back of concerns over reputational damage and potential costs related to implementing enhanced security protocols. The Chinese firm later stated that some parts of the app were not affected, adding it was going to pursue legal action against the perpetrators, signalling a much tougher stance as scrutiny around online content continues to grow in China. Some reports also indicate that the company is now looking to hire more cybersecurity staff to enhance security. Online posts that were shared insinuated openings for engineers and security specialists, highlighting a wider push to strengthen defences following the attack. The attack on Kuaishou comes as Chinese regulators are increasing pressure on digital platforms, with authorities calling on companies to remove harmful material and prevent its spread with haste. These have specifically cited content linked to violence, vulgarity, or risks to minors. As Cryptopolitan reported, regulators recently summoned major tech firms over content violations as part of a broader crackdown on online platforms. The campaign aims to clean up digital spaces and hold companies accountable for what appears on their services. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.