MicroStrategy’s QQQ Entry: How will it impact PRICE? 📈

#microstrategy $MSTR #PriceImpact #PricePrediction #QQQAddition #BubbleorNo #PassiveETF
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0:00 – Next Up – My Analysis of Price Impact of QQQ
0:42 – MSTR Treasuries Exploding
1:24 – Now has a $43BN BAG
2:06 – Saylor Not Selling
2:48 – MSTR 21/21 Plan Status
3:30 – Bondholders Don’t Mind Paying!!!!!!
4:12 – $MSTR Satoshis Per Share Since Inception
4:54 – $MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot
5:36 – Likely a 0.47% weight (40th biggest holding). There’s $550b of ETFs tracking the index.
6:18 – S&P 500 add next yr prob.
7:00 – MORE FIRE
7:42 – Upcoming Vid QQQ Impact on MSTR Price
8:24 – $MSTR 91BN MKT CAP
9:06 – MSTR Top Shareholders
9:48 – Top 25 shareholders own 44.38% of the company
10:30 – They are not selling
11:12 – General Public own 46.6%
11:54 – B
12:36 – MSTR Nav Lowest Since 2023
13:18 – Now 2.1x
14:00 – MSTR Nav Premium 2.2 – Lowest All Year
14:42 – MSTR Price Impact on QQQ Inclusion
15:24 – December 10, 2024
16:06 – Introduction to MSTR in QQQ
16:48 – Assumptions for Price Impact
17:30 – Daily Inflow and Share Purchase
18:12 – Percentage of Float Purchased
18:54 – Basic Price Impact Calculation
19:36 – Compounded Price Increase
20:18 – Short Squeeze Potential
21:00 – Final Price Impact Multiplier
21:42 – Agenda
22:24 – Overview
23:06 – MicroStrategy (MSTR) could be added to the QQQ ETF with a weighting of 0.5%, indicating its growing prominence in the tech sector.
23:48 – This inclusion could represent approximately $2 billion in buying pressure over a 3-day rebalancing period, significantly impacting MSTR’s liquidity and price.
24:30 – A 0.5% weighting in a major ETF like QQQ signifies investor confidence and can lead to increased interest from other institutional investors.
25:12 – Introduction to MSTR in QQQ
25:54 – Daily Inflow and Share Purchase
26:36 – Price Impact Calculation
27:18 – Daily Inflow Calculation
28:00 – Shares to be Purchased Daily
28:42 – Total Shares Over 3 Days
29:24 – Impact on Share Float
30:06 – Total inflow of $2 billion over 3 days results in a daily inflow of:
30:48 – Daily Inflow = $2,000,000,000 / 3 = $666,666,667.
31:30 – With MSTR at $382 per share, the daily shares purchased:
32:12 – Shares Purchased Daily = $666,666,667 / $382 = 1,745,200 shares.
32:54 – Total shares purchased over 3 days:
33:36 – Total Shares = 1,745,200 shares/day * 3 = 5,235,600 shares.
34:18 – Daily purchases represent a percentage of the total float:
35:00 – Percentage Purchased Daily = (1,745,200 / 100,000,000) * 100 = 1.75%.
35:42 – Daily Inflow: $666,666,667
36:24 – Shares Purchased Daily: 1,745,200
37:06 – Total Shares Purchased: 5,235,600
37:48 – Percentage of Float Purchased Daily: 1.75%
38:30 – Linear Price Impact Assumption
39:12 – Daily Shares Purchased
39:54 – Daily Price Increase Calculation
40:36 – Total Price Increase Over Three Days
41:18 – Percentage of Float Impacted
42:00 – Initial Price Adjustment