S&P 500 Potential: Strategy Could See $16 Billion Inflows With Index Inclusion–Bloomberg

Strategy, formerly known as MicroStrategy, has made major inroads into the crypto market with its bold transformation into a Bitcoin (BTC) treasury, a move that has yielded substantial unrealized gains over the past ￰0￱ Saylor’s approach has positioned the enterprise software firm as a potential candidate for inclusion in the S&P 500, an index of the 500 largest publicly traded companies in the United ￰1￱ Saylor’s Firm Eyes S&P 500 Inclusion According to a Bloomberg report , the company’s $14 billion unrealized gain last quarter has theoretically fulfilled the profitability requirements necessary for entry into this ￰2￱ the path to inclusion remains challenging, Bloomberg reports that, if accepted, passive investment funds tracking the index would be required to purchase approximately 50 million shares of the ￰3￱ would result in an estimated $16 billion influx at current market prices.

However, the report notes that the process of gaining entry into the S&P 500 is far from ￰4￱ index committee evaluates various factors, including liquidity, profitability, and trading history, while also applying subjective judgment concerning sector ￰5￱ must meet specific criteria, such as a minimum market capitalization of $22.7 billion and demonstrate positive income over the most recent and past four ￰6￱ of this writing, Saylor’s firm has a market cap of over $90 ￰7￱ technology sector currently dominates the S&P 500, but the recent inclusion of Coinbase Global and Block, founded by Jack Dorsey, indicates a growing recognition of digital assets in mainstream ￰8￱ Roberts, managing director at Stephens, noted that Coinbase’s entry signifies the committee’s intention to bolster representation from leading companies in emerging sectors.

“If someone is a big player in the space, it’s hard to ignore them,” she ￰9￱ Ahead For Strategy Despite the optimism surrounding Strategy’s candidacy, skepticism persists regarding the sustainability of Saylor’s corporate-treasury ￰10￱ model involves raising capital through debt and equity to acquire and hold ￰11￱ August, shares of Strategy fell by 17%, indicating a potential erosion of the premium the firm previously enjoyed over its Bitcoin assets. Moreover, the volatility of Strategy’s stock, MSTR, with 30-day price fluctuations reaching 96% according to Bloomberg data, surpasses even notable tech giants like Nvidia and ￰12￱ report highlights that this volatility could raise red flags for the index ￰13￱ though Strategy was included in the Nasdaq 100 last December, the S&P 500 represents a much larger stage, managing nearly double the assets, with close to $10 trillion tied to passive investment ￰14￱ has previously hinted that 2025 could be a pivotal year for S&P 500 ￰15￱ image from DALL-E, chart from ￰16￱