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Tom Lee: MicroStrategy Becomes the Preferred Risk Hedging Choice in the Crypto Market

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According to a report by CoinDesk on November 23, Tom Lee, chairman of the crypto mining company Bitmine Immersion, stated that MicroStrategy(MSTR) has become the preferred tool for institutional investors to hedge against crypto asset risks, which is also the main reason for its stock price falling 43% in the past month. With nearly 650,000 Bitcoins held, MicroStrategy is seen as a liquidity proxy for Bitcoin. Lee pointed out that after the market crash in October, the liquidity in the crypto derivation market was insufficient, making it difficult for large investors to hedge risks directly in the crypto market, leading them to use the high liquidity options chain of MSTR for hedging operations. Analysts warn that although MicroStrategy's current financial situation is stable, the company may face challenges with convertible bond options expiring in 18 months if the Bitcoin market remains under pressure.

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