Inclusion to S&P500 is a committee decision, not based on purely market cap. It may not happen for MSTR.
MSTR is essentially a leveraged, debt laden commodity trust rn, with a highly volatile commodity making up most of its balance sheet.
Their premium to NAV is indeed very high, and makes you think why would anyone buy that vs a BTC ETF. Perhaps if you think BTC goes a lot higher (and stays there) their ongoing leverage and the premium you pay for it now makes sense? Their debt is pretty well structured - v. low interest and matures a long time from now, but remains to be seen how long he can keep issuing it.
He also keeps saying he's never going to sell BTC, but I don't see how he's going to service his debt eventually if he doesn't sell. Unless he starts market making with the treasury or somehow putting it to work
MSTR is essentially a leveraged, debt laden commodity trust rn, with a highly volatile commodity making up most of its balance sheet.
Their premium to NAV is indeed very high, and makes you think why would anyone buy that vs a BTC ETF. Perhaps if you think BTC goes a lot higher (and stays there) their ongoing leverage and the premium you pay for it now makes sense? Their debt is pretty well structured - v. low interest and matures a long time from now, but remains to be seen how long he can keep issuing it.
He also keeps saying he's never going to sell BTC, but I don't see how he's going to service his debt eventually if he doesn't sell. Unless he starts market making with the treasury or somehow putting it to work