MicroStrategy Exposed to $10 Billion Bitcoin Options Expiry Risk
MSTR•About $10 billion of Bitcoin options expiring on Deribit represent roughly 37% of open interest, with most bullish calls now out of the money. Bitcoin’s drop below its 200-week moving average to near $59,000 heightens risk for MicroStrategy’s Bitcoin-weighted balance sheet.
1. Overview of Bitcoin Options Expiry
About $10 billion notional of Bitcoin options on Deribit expire this Friday, representing roughly 37% of the platform’s open interest. This expiration, loaded with bullish call bets, follows Bitcoin’s fall toward $59,000.
2. Market Positioning and Risk
The overall put-call ratio stands at 0.83, indicating more bullish call volume historically, though most calls are now out of the money. Puts cluster around $60,000–$65,000 and $70,000–$75,000, suggesting bearish positions are poised to gain if prices remain depressed.
3. Implications for MicroStrategy
Bitcoin’s drop below its 200-week moving average signals potential for a prolonged decline, which could stress MicroStrategy’s Bitcoin-heavy balance sheet. Thin quarter-end and summer liquidity may amplify price swings before dealer hedging unwinds.
