MST Overview

Reverse Stock Splits Announcement: Tidal Financial Group and Defiance ETFs are implementing reverse stock splits for five leveraged ETFs, effective December 9, 2025, to reduce outstanding shares and increase share prices without affecting total investment value.

Details of the Splits: The reverse split ratios vary by fund, with reductions in outstanding shares ranging from 75% to 87.5%, and shareholders will automatically receive adjusted share balances without needing to take any action.

Fractional Shares and Tax Considerations: Shareholders may receive cash compensation for fractional shares resulting from the splits, which could have tax implications, prompting the need for consultation with tax advisors.

About Defiance ETFs and Tidal Financial Group: Defiance ETFs focuses on thematic and leveraged ETFs for innovative market exposure, while Tidal Financial Group offers comprehensive ETF solutions to help asset managers launch differentiated strategies.

MSTR's Performance: Strategy Inc. (MSTR) experienced a significant decline of around 15% over five days, exacerbated by its decision to sell shares to fund Bitcoin purchases, leading to a drop in its leveraged ETFs, including MST and MSTX, which fell nearly 29% and 28% respectively.

Market Conditions: The broader cryptocurrency market faced a downturn, with Bitcoin and Ethereum prices dropping, which negatively impacted crypto-related equities like MSTR and its leveraged ETFs, highlighting the volatility and risks associated with such investments during bear markets.

ETF Inflows: The MST ETF experienced the largest increase in inflows, adding 1,050,000 units, which represents a 40.0% rise in outstanding units.

Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.

ETF Introduction and Features: Defiance ETFs launched the Defiance Leveraged Long + Income MSTR ETF, which offers leveraged exposure to MicroStrategy Inc. shares while providing weekly income through an options-based strategy, with an initial payout of $0.3350 per share scheduled for May 22.

Investment Risks and Target Audience: The fund's structure involves high risks due to its use of derivatives, making it suitable primarily for experienced investors familiar with leveraged products, as it aims to attract those seeking both income and exposure to MicroStrategy's volatility and Bitcoin market fluctuations.

Defiance ETFs Launches Innovative Product: The new Defiance Leveraged Long + Income MSTR ETF combines leveraged exposure to MicroStrategy shares with weekly income dividends, targeting risk-conscious investors seeking both momentum and cash flow.

Strategic Focus on MicroStrategy: CEO Sylvia Jablonski emphasizes that MicroStrategy offers the highest sensitivity to Bitcoin, making it an ideal choice for traders looking for leverage and options overlays, while also appealing to those wanting indirect exposure to Bitcoin without owning it outright.

Introduction of MST ETF: Defiance ETFs has launched the MST, a unique fund that offers leveraged long exposure to MicroStrategy Inc. while providing weekly income through an innovative credit call spread method, catering to investors seeking both growth and income.

Investment Risks and Structure: Although MST aims for capital growth and income generation, it carries significant risks due to its leveraged nature and connection to volatile cryptocurrency markets, making it suitable for risk-tolerant investors.