Tom Lee: Holding 650,000 bitcoins, Strategy has become the preferred choice for market hedging

According to CoinDesk, Bitmine Chairman and CEO Tom Lee stated in an interview with CBDC that due to the limited on-chain options, MSTR has become the preferred tool for cryptocurrency investors to manage risk. Institutional cryptocurrency investors are using Strategy (MSTR) stock to hedge losses, resulting in a 43% drop in the stock.

Tom Lee believes that Strategy holds a large amount of Bitcoin (650,000 coins), and its liquidity far exceeds that of BTC and ETH derivatives. Therefore, when crypto liquidity is depleted and market makers are affected, institutions cannot effectively hedge on-chain and can only short MSTR to hedge against losses in Bitcoin and Ethereum.

Tom Lee also pointed out that the market mechanism for cryptocurrencies remains fragile, and Strategy, as a hedging tool, indicates deeper structural issues.