One of the biggest corporate holders of Bitcoin (BTC), MicroStrategy, is about to become eligible to be included in the S&P 500 index.
This might completely change how investment portfolios are constructed throughout the industry. With its strategic focus on Bitcoin and its recent market performance, the Bitcoin whale is well-positioned to compete for this important milestone.
The S&P 500 is an index of the US stock market that monitors the performance of the top 500 publicly traded firms. With a market value of over $42 trillion, the S&P 500 is one of the most watched indices in the world, accounting for more than 80% of all publicly traded US companies.
As of publication time, MicroStrategy is ranked 535th, having dropped 25 spots in the previous day as its shares fell 6.74% to trade at $718. But since the start of the month, its stock has surged, increasing its market value by about $4 billion.
Indeed, MicroStrategy, which trades on the Nasdaq under the ticker symbol MSTR, has experienced one of the biggest gains of any stock globally in the past year, rising from $1.63 billion at the beginning of the year to $12.11 billion today.
Fueled by Bitcoin, MicroStrategy’s price soared, and now it might be fueling Bitcoin’s recent surge itself, as the co-founder Micheal Saylor continues to strongly promote Bitcoin adoption and HODL to the masses.
It’s not enough to simply be one of the 500 largest firms to get into the S&P 500. Coinbase is not included in the crucial index, despite having a $40 billion market cap and ranking 223rd in the US market cap list.
The market cap is one of the other considerations for index entry. A corporation had to reach $14.5 billion under the prior regulations; but, under the revised guidelines, which went into effect on January 2, the threshold is now $15.8 billion.
Bitcoin will emerge as the ultimate winner if MicroStrategy manages to meet all of these criteria and joins the S&P 500. Senior Unchained executive Joe Burnett believes that this would start a feedback cycle that eventually drives Bitcoin’s price to unprecedented heights.
Trillions of dollars pour into index funds with the S&P 500 index funds drawing the largest inflows, according to Burnett. As the index funds buy MSTR stock, this would raise the market value of MicroStrategy.
Also Read: MicroStrategy’s Bitcoin Valuation Soars Beyond $10 Billion
