Jane Street Boosts MSTR Stake by 54% to 4.1 Million Shares

Jane Street Group increased its holdings in Strategy (MSTR) by 53.8% during the third quarter, reaching 4,119,097 shares, according to a Form 13F filed Thursday with the SEC. The position is dated Sept. 30 and does not reflect any trades the firm may have executed after that date.

Those qualifications are as significant as the gain. Jane Street is a trading firm and one of the largest market makers in equities, ETFs and options. The same filing shows call options covering 13,573,000 Strategy shares and put options covering 13,991,800 shares, each more than triple the size of the common stock position. Some portion of the stock holding likely serves as a hedge for the options and market-making book rather than a direct bet on the company. The 13F does not specify how much.

At the Sept. 30 price of $153.09, the shares were valued at $630.6 million. Since then, Strategy has fallen roughly 25%. Based on Thursday's closing price of $114.41, the same 4,119,097 shares were worth approximately $471 million.

The Class A position increased by 1,441,475 shares from the 2,677,622 Jane Street reported on June 30, when that holding was valued at $232.8 million. The firm filed about four days before the Nov. 16 deadline; the SEC accepted the report at 4:04 p.m. Eastern on Thursday.

Call and put positions that dwarf Strategy’s stock

The options positions were already substantial in the second quarter and expanded further. Calls covering 13,573,000 shares were valued at $2.08 billion in the latest filing, while puts covering 13,991,800 shares, listed across two rows, were valued at $2.14 billion. Those figures rely on the same Sept. 30 share price used for the common stock line; a 13F reports the underlying shares the options cover, not the cash premium paid for the contracts.

The filing aggregates holdings across seven other included managers, including Jane Street Capital, Jane Street Options and Jane Street Global Trading, so the Strategy lines may represent inventory across the group rather than a single proprietary position. Authorized Signatory Jeremy Kahn signed the report in New York on Nov. 12. The table lists 14,764 entries valued at $1.19 trillion.

Other early 13Fs so far, with bigger names still to file

Jane Street's 53.8% increase was the largest percentage rise among the major Strategy stakes in Thursday's early 13F wave. Capital International Investors, a unit of Capital Group, boosted its stake 4.5% to 36,467,109 shares, worth about $4.17 billion at Thursday's close. Invesco added 10.9%, reaching 10,362,698 shares, worth about $1.19 billion. Renaissance Technologies reduced its position 41%, to 1,515,560 shares, worth about $173 million, and exited the spot bitcoin ETF holdings it had reported at midyear, including BlackRock's iShares Bitcoin Trust.

JPMorgan Chase, in a previously reported filing, increased its Strategy stake 36% to 848,932 shares and held 11.4 million IBIT shares, worth about $460 million at Thursday's close. In another early 13F, Bank of New York Mellon raised its stake in Strive (ASST). Those share counts, like Jane Street's, are as of Sept. 30.

Still to file by the Nov. 16 deadline are the main quarterly 13Fs from Goldman Sachs, Morgan Stanley, Millennium and Mubadala. Institutional managers with investment discretion over $100 million or more in 13F securities have 45 days after quarter-end to disclose those holdings. That window ran to Nov. 14, a Saturday, so the deadline is Monday.

The Sept. 30 snapshot also precedes this week's decision by MSCI to remove Strategy from its USA index, a step that will force index funds to sell by Nov. 30, and it precedes the stock's decline since quarter-end. Monday's remaining filings will show where other large holders stood on the same date, not where they stand now.