Thought TradFi could only "retire"? MSTRX plummeted 65% all the way down, turns out you can also profit from shorting

Today, while checking Gate market prices, I was suddenly hit hard by a piece of data:

MSTRX (MicroStrategy xStock) has fallen from $455 in July 2025 to $159 now, a drop of up to 65%.
Even more heartbreaking — I just realized today that Gate not only allows trading MSTRX but also supports short selling directly.

The feeling at this moment can only be summed up in one sentence:
The money in TradFi wasn’t unreachable; I just didn’t understand it.

What is MSTRX? Why is it considered TradFi?

MSTRX (MicroStrategy xStock) is essentially a on-chain/platformized derivative trading target of MicroStrategy (MSTR) stock, reflecting a traditional US-listed company.

And MicroStrategy itself, in the world of TradFi, is no longer just an “ordinary tech company.” It’s more like a:

• TradFi player wildly betting on Bitcoin with company assets
• A listed company turning itself into a “leveraged BTC ETF”

To put it simply:
MSTR ≈ Stock shell + high-leverage BTC long position

So, although MSTRX is traded on crypto platforms, its logic, risks, and volatility are completely rooted in TradFi narratives.

Why can MSTRX fall so sharply?

A 65% decline is no coincidence; it’s actually the result of multiple TradFi risks stacking up.

First is weakening Bitcoin market conditions.
MicroStrategy’s core asset is BTC. When BTC drops from high levels, the company’s net assets and market sentiment are simultaneously impacted and amplified.

Second is leverage structure issues.
MicroStrategy has been increasing its Bitcoin holdings over the years through debt issuance and convertible bonds. During an uptrend, this acts as an amplifier; but during a correction, it becomes a killer. The biggest fear in TradFi markets is never just a decline, but high leverage + falling prices.

Third is valuation reversion.
In a bull market, the market is willing to give MSTR a “BTC premium shell” valuation; but when risk appetite drops, TradFi investors quickly shift focus back to old issues like cash flow, debt ratios, and asset safety margins.

The result is:
When BTC drops a little, MSTRX drops a lot.

The real overlooked point: TradFi can profit both ways

What makes me regret isn’t just that MSTRX fell, but that:

Such a classic TradFi downside logic can be directly shorted on Gate.

In crypto markets, everyone is used to watching:

• New public chains
• Memes
• AI
• New narratives

But in TradFi assets, there are many:

• Highly leveraged companies
• Cyclical assets
• Emotion-driven valuations

When prices go up, you can go long; when they go down, you can short. This is fundamentally more “tradeable” than many altcoins.

A wake-up call for crypto users

If you:

• Only hold USDT
• Haven’t seen much movement in the crypto space recently
• Watch TradFi fluctuate wildly but don’t know how to act

then it’s not that you missed an opportunity; it’s that you haven’t yet regarded TradFi as a tradable money-making pool.

Opportunities in TradFi are no less than in crypto — they just come with a different narrative.