REX Shares and Tuttle Capital Management are introducing two new ETFs offering leveraged exposure to MicroStrategy, expanding the options for traders seeking amplified bets on the bitcoin-focused tech company.

The T-REX 2X Long MSTR Daily Target ETF (MSTU) and the T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) began trading Wednesday, providing 200% leveraged and 200% inverse exposure to MicroStrategy’s daily price movements, respectively, according to a press release. These are the first ETFs to offer double leveraged and inverse exposure to MicroStrategy.

The new ETFs from REX and Tuttle join a growing lineup of leveraged products tracking MicroStrategy. These funds underscore issuers' efforts to meet growing demand for crypto-focused assets and MicroStrategy's large presence in the digital assets space.

Last month, Defiance ETFs introduced the Defiance Daily Target 1.75x Long MSTR ETF (MSTX), which has quickly amassed $211.7 million in assets, becoming Defiance’s third-largest ETF, according to etf.com data. Defiance recently filed with the Securities and Exchange Commission to update MSTX to 2x leverage.

Read More: Defiance Debuts Leveraged 1.75x MicroStrategy ETF

 

Defiance also launched the $2.5 million Daily Target 1.5X Short MSTR ETF (SMST) weeks after MSTX, offering inverse exposure to MicroStrategy’s daily performance.

Read More: Defiance Debuts Short MicroStrategy ETF, New Tech ETFs

MircoStrategy’s Growing Bitcoin Holdings

MicroStrategy, founded in 1989, began as an enterprise software and cloud-based services provider. Its value is now almost entirely tied to its bitcoin holdings, making the company a proxy for the world's largest cryptocurrency.

As of Sept. 12, MicroStrategy held 224,800 bitcoins, valued at approximately $9.45 billion, according to a recent SEC filing. The company acquired these at an average purchase price of $38,585 per bitcoin, including fees and expenses.

Between Aug. 6 and Sept. 12, MicroStrategy bought an additional 18,300 bitcoins for about $1.1 billion in cash, at an average price of approximately $60,408 per bitcoin, the filing said.

 

On Monday, MicroStrategy announced in a press release that it plans to offer $700 million in convertible senior notes due 2028.

MicroStrategy intends to use the net proceeds to redeem $500 million in outstanding 6.125% senior secured notes due 2028 and potentially acquire more bitcoin, the company said. The redemption of the senior secured notes will release approximately 69,080 bitcoins used as collateral.

Bitcoin, the largest crypto by market capitalization, was recently trading at $59,539, down 2.8% over the past 24 hours, according to data provider CoinMarketCap. MicroStrategy’s stock has surged 92.7% year-to-date, reflecting, another sign of the rising interest in crypto-related investments.