Last November’s IBIT options debut matched the cycle high of the strategy.

MicroStrategy’s Valuation Peak Coincided With IBIT Options Launch

BlackRock’s iShares Bitcoin Trust (IBIT) options debuted on Nov. 19 with a record-setting start, generating more than $2 billion in first-day trading volume. The launch marked a pivotal moment for bitcoin-linked investment vehicles, highlighting the contrast between equity-driven exposure and ETF-based products.

At nearly the same time, MicroStrategy’s (MSTR) valuation cycle peaked. The company’s multiple to net asset value (mNAV)—its enterprise value divided by the value of its bitcoin holdings—hit 3.141 on Nov. 20, just as bitcoin approached $100,000 and MSTR shares reached a record high of $540.

Since then, MSTR has dropped roughly 40%, with its mNAV compressing to 1.55. At its peak, the company held 331,200 BTC, up more than 305,000 BTC from earlier periods, cementing its role as a leveraged proxy for bitcoin exposure.

For years, MSTR has provided traders with a hybrid vehicle—part equity, part bitcoin play—that allowed for both leveraged positioning and options strategies. This set it apart from IBIT, which offers direct spot bitcoin exposure without equity-driven dynamics. Now, investors can choose between the two depending on their risk appetite and trading approach.

Despite IBIT’s successful launch and steady inflows, MSTR has been the stronger performer since spot bitcoin ETFs arrived in January 2024. The stock has surged more than 515%, far outpacing IBIT’s 128% gain. On measures such as trading activity and volatility, MSTR continues to hold an advantage.

Currently, bitcoin’s implied volatility is below 40—a historically muted level. With subdued expectations for price swings, demand for leveraged equity-style vehicles like MSTR tends to cool. For momentum to return, a resurgence in bitcoin volatility may be the necessary catalyst.