Strategy (MSTR), the firm steered by Bitcoin evangelist Michael Saylor, is now widely viewed as a top contender for inclusion in the S&P 500.
The momentum behind the bid comes after Strategy’s transformation into what many investors describe as a Bitcoin holding vehicle. Over the past year, its shares have soared more than 160%, a run fueled by the relentless accumulation of Bitcoin on its balance sheet. With a market capitalization now comfortably above $22 billion, the company has reached the threshold typically required for index entry.
A turning point arrived last quarter when Strategy posted a massive paper gain of $14 billion on its crypto reserves. That windfall gave the firm the profitability track record needed to pass one of the S&P’s strictest hurdles, making it financially eligible for the first time.
The S&P 500 is not an easy club to join. Prospective members must trade on a major U.S. exchange for at least a year, have half their shares publicly available, and maintain strong liquidity with hundreds of thousands of shares changing hands monthly. Profitability, both in the most recent quarter and cumulatively over the past year, is also a requirement.
Research from Stephens indicates that Strategy now tops a list of 26 firms vying for entry, beating out names like Robinhood and Carvana in terms of liquidity-adjusted metrics.
Still, nothing is automatic. The S&P Index Committee has broad discretion and could hesitate given Strategy’s unique business model, which hinges almost entirely on Bitcoin’s price. The stock’s volatility—its 30-day average swings are nearly double that of most large-cap peers—may also give decision makers pause.
If Strategy does make the cut, the implications could be significant. Index inclusion forces passive funds, which collectively manage trillions of dollars, to buy shares. This so-called “index effect” has historically provided a tailwind, even if the initial surge has become more muted in recent years.
For crypto advocates, Strategy’s potential addition would mark another milestone in Bitcoin’s march into mainstream finance. It would mean that retirement accounts, index funds, and pensions would inevitably hold exposure to a company whose fortunes rise and fall with the world’s largest digital asset.
Whether the decision comes in the next rebalance or later, one thing is clear: Bitcoin is no longer a fringe investment. The possibility of a Bitcoin-heavy firm joining the S&P 500 illustrates how deeply digital assets have embedded themselves into America’s financial landscape.
Bitcoin Price
At the moment, Bitcoin is trading near $112,873—a level that reflects moderate strength amid ongoing market caution.
This price zone underscores the tug-of-war investors face: technical resistance around $112K–$115K could avert further upside, while the long-term bullish narrative remains intact if Bitcoin can break through.
Should the cryptocurrency maintain momentum and stabilize above this threshold, it could lend added legitimacy to Strategy’s positioning as a genuine “Bitcoin proxy” in the eyes of institutional investors. Conversely, renewed volatility—especially if Bitcoin dips back below $110K—might raise fresh questions for the S&P committee about including a stock so tightly tethered to crypto price swings.
Source: Bloomberg
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