T-Rex 2X Long MSTR Daily Target ETF: Leverage On Leverage

  • MSTU, aiming for 2x MSTR's daily return, is risky due to MSTR's 126% premium and volatility decay impacting returns. MSTR's premium, driven by Bitcoin exposure, is unsustainable with current stock issuance and unclear correlation with Bitcoin's future performance. MSTR's financing strategy, once effective, now relies on high-dividend preferred stock, signaling challenges in leveraging common stock and debt.