Tom Lee of Bitmine says institutional crypto investors are using MicroStrategy (MSTR) as a hedge by shorting the stock to offset crypto losses. MSTR’s large bitcoin holding (~650,000 BTC) and very liquid option chain make it suitable for hedging, while limited liquidity in crypto derivatives and post‑Oct. 10 market stress have reduced market‑maker capacity. Those hedging flows have heavily sold MSTR (down ~43% over the past month), exposing fragile market plumbing.

Tom Lee states institutional investors short MSTR to hedge crypto losses because MSTR holds ~650,000 BTC and has a very liquid option chain. The summary reports limited liquidity in crypto derivatives and post‑Oct. 10 market strain that reduced market‑maker capacity, and that MSTR has been heavily sold (down ~43% in the past month), indicating hedging flows moved the stock.