Brian Jung, founder of Kaizen, shares insights on his profitable short position against MicroStrategy (MSTR) in a recent discussion on the 10X podcast with Jennifer Sanasie. By employing the MSTZ 2X inverse ETF, Jung capitalized on a notable decline in MicroStrategy’s stock, achieving returns over 120% within a month. His strategy centers on concerns about stock dilution driven by Michael Saylor and the resulting impact on the company’s valuation, especially in relation to its Bitcoin holdings.
In the interview, Jung elaborates on the trade’s structure and the technical signals guiding his planned exit. He argues that the premium on MicroStrategy stock is likely unsustainable and notes a shift in institutional sentiment. This conversation provides a detailed look at advanced hedging approaches in the digital finance sector, highlighting how strategic shorting can yield significant gains in volatile markets.