A senior Analyst stated that this company has crossed the final threshold and qualifies for inclusion in the S&P 500 Index, which could indirectly make Bitcoin an Index Asset.
According to Zhito Finance APP, any investors holding S&P 500 Index constituents might soon hold Bitcoin indirectly. $Strategy (MSTR.US)$ Senior Analyst Jeff Walton stated this week on social platform X that this company has crossed the final threshold and qualifies for joining this highly anticipated Index, which could indirectly make Bitcoin an Index Asset.
Since Strategy was included in the NASDAQ 100 Index, the core question has been whether this publicly traded company that holds the most Bitcoin can next enter the S&P 500. However, there has been a key obstacle for months: a 12-month continuous profitability record.
Under previous accounting standards, Strategy was forced to report Bitcoin holdings at impairment prices, leading to negative Earnings Reports due to unrealized losses. However, after the Financial Accounting Standards Board (FASB) relaxed rules allowing companies to record digital assets at fair value, the company finally met the profitability standards.
Walton pointed out that with Bitcoin closing at about $0.107 million on Monday, Strategy is expected to report $14 billion in profit for the second quarter, with net income reaching $11 billion over the past 12 months. "This clears the last hard indicator for Strategy's inclusion in the S&P 500."
However, meeting the criteria does not necessarily guarantee successful inclusion. Walton stated that the S&P 500 Index Committee has complete discretion during the selection process, which may be "controversial and highly discussed."
The committee generally considers factors such as index balance, economic representation, and stability. Analysts have differing opinions on whether Strategy's Bitcoin hoarding model will be an obstacle, with some views suggesting that the company's operations currently resemble a closed-end fund.
Antti Petajisto, the head of Stocks at Bruker Corp, mentioned to Bloomberg last year regarding the possibility of the Strategy being included: "S&P has excluded ETFs and closed-end funds from the Index because it wants constituent stocks to be operational entities rather than investment funds."
In any case, market observers will have to wait until the third week of September to know the results - the second quarter inclusion window has closed. If successful, the company will become the second crypto-related company to join the S&P 500 this year after Coinbase (COIN.US) was added in May. Bitcoin content creator "Alexes Nakamoto" stated: "Inclusion in the S&P 500 means that all mainstream index Funds will hold Strategy Stocks, further solidifying Bitcoin's mainstream legitimacy."
Currently, the stock price of Strategy is $403.99, with a Market Cap of $112.85 billion. It holds 597,325 Bitcoins, valued at nearly $64 billion, accounting for almost 3% of the total supply of this asset.
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