$MSTR joining the $QQQ is dumb

BrianTycangco鄭彥渊
2024-12-15

$MicroStrategy(MSTR)$ joining the $Invesco QQQ(QQQ)$ is dumb.

Where is the fiduciary responsibility by Invesco $Invesco(IVZ)$ to their clients (ETF holders)? It's not a "proxy" to BTC because it trades at an enormous premium to the only asset it holds.

Even if MicroStrategy were to be considered a proxy for Bitcoin, it makes little sense to add highly volatile crypto as part of a broad index filled with companies that have an "E" to derive a PE ratio.

It's a high-beta play on Bitcoin. Should that be really part of a company-based index?

All it does is make sure that about 0.6% of QQQ's $207B AUM (or about $1.2B) flows into MSTR's stock upon inclusion. More Nasdaq 100 ETFs will follow suit for sure.

But it looks like it's happening. The powers that be will it to happen. And you'd be crazy to ignore the resulting stream of cash that's going to be flowing into this Bitcoin "proxy."

Honest question:

What is MSTR's moat? Is there anything stopping another company from doing exactly what it's doing? Is there a company that could do what it does better for less (of a premium)?

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