Strategy Leveraged ETFs Tied to MSTR Slump More Than 80% This Year

Leveraged exchange-traded funds tied to Strategy Inc. have suffered steep losses as Bitcoin weakness and a slide in Strategy's stock batter crypto-linked products, market analysis account The Kobeissi Letter wrote.

In a post on X on June 29, The Kobeissi Letter said leveraged crypto-related products are taking a heavy hit.

Strategy's 2x long leveraged ETFs MSTX and MSTU have each fallen 82% this year, according to the account. Both are trading at their lowest levels since their 2024 launches.

Another 2x long leveraged ETF, MSTP, is down 81% this year. It too has fallen to its lowest level since its June 2025 launch.

Strategy shares, the underlying asset for the funds, have also struggled. MSTR has dropped 46% this year and slid to its lowest level since February 2024, The Kobeissi Letter wrote.

Losses were even steeper last week. MSTX, MSTU and MSTP each lost nearly half their value in a single week, while MSTR fell 27% over the same period.

The Kobeissi Letter said long and short leveraged ETFs linked to MSTR that launched in 2024 have fallen more than 90% since inception. The products attracted billions of dollars of inflows, but high volatility and compounding effects appear to have deepened losses.

Leverage is amplifying losses across the broader crypto market, the account added.