What could block Strategy’s path to the S&P 500
Michael Saylor’s Strategy is emerging as a potential candidate for inclusion in the S&P 500 index, contingent upon certain requirements. Analysts suggest that while the company’s trading volume exceeds millions of shares a day and has a market capitalization over $92 billion with a positive net income, it may face challenges ahead. The US Index Committee, responsible for adding companies to the S&P 500, evaluates candidates holistically. Despite exceeding basic requirements like a market cap of $22.7 billion and positive GAAP net income, Strategy's volatile stock, averaging 96% price swings, may hinder its acceptance. As the largest Bitcoin treasury holder, Strategy holds over 636,505 BTC. Incorporation into the S&P 500 could significantly influence the broader crypto market by attracting passive investment flows. Recently, Coinbase and Block became the first crypto firms listed in the index, setting a precedent for others like Strategy to follow, provided they can navigate the hurdles presented by stock volatility and sustainability concerns.
Source 🔗