Bitcoin $10B Options Expiry Could Intensify MicroStrategy Asset Pressure
MSTR•About $10 billion of Bitcoin options expiring Friday represent 37% of open interest, with most long calls now out-of-the-money as Bitcoin slid to $59,023, its lowest since October 2024. This concentrated expiry in thin liquidity could amplify Bitcoin volatility and further pressure MicroStrategy’s Bitcoin-backed asset valuation.
1. $10B Options Expiry Details
About $10 billion of Bitcoin options on Deribit are set to expire Friday, accounting for 37% of total open interest. The bulk of these contracts are bullish long calls, now largely out-of-the-money given recent Bitcoin declines.
2. Recent Bitcoin Price Action
Bitcoin dropped below the 200-week moving average, slipping to $59,023—the lowest level since October 2024—before rebounding to around $60,800. Puts are clustered at $60,000–$65,000 and $70,000–$75,000 strikes, signaling heightened bearish bets.
3. Implications for MicroStrategy Valuation
MicroStrategy’s Bitcoin-backed assets on its balance sheet will see valuation swings tied to Bitcoin’s price moves. A sharp expiry-driven downturn could prompt additional impairments on its cryptocurrency holdings.
4. Liquidity and Volatility Outlook
With quarter-end and summer trading volumes thin, the concentrated expiry may trigger outsized price swings before mean reversion once dealer hedging unwinds. Defensive positioning by market makers could exacerbate short-term volatility.
