Leveraged ETFs tied to bitcoin strategy suffer in crypto slump, with T-Rex 2X Long MSTR ETF losing 85%, shares of Strategy down 40% due to bitcoin drop below $90,000. Despite record highs, bitcoin slides due to global risk aversion.

Strategy cuts earnings outlook, anticipating $6.3 billion profit to $5.5 billion loss due to bitcoin price drop, reserves $1.44 billion for dividends. Short sellers gain $2.5 billion, Strategy shares halve since joining Nasdaq 100 index.

Analysts remain optimistic on Strategy, with 10 “buy” ratings and $485 price target, expecting 183% increase. CEO Saylor to speak at Binance conference in Dubai.

Read more at Yahoo Finance: Strategy’s leveraged ETFs hit hard by crypto slump