Saylor’s Bitcoin-Backed ‘Strategy’ Could Be Next Big Name in S&P 500

Michael Saylor’s company, Strategy (MSTR), has reportedly satisfied every requirement necessary for inclusion in the S&P 500 Index, potentially carrying nearly $70 billion in Bitcoin into the benchmark.

Profitability Boost Paves the Way

According to a report by Bloomberg, Strategy’s latest quarterly earnings showed an unrealized gain of $14 billion, securing the profitability milestone that had previously kept it out of consideration. This marked the final condition in the eligibility checklist for the index, which requires sustained profitability across the last four quarters as well as in the most recent one.

The transformation from an enterprise software provider into a corporate Bitcoin vault has redefined Strategy’s market identity. Over the past year, its stock has surged 161%, driven by its direct exposure to Bitcoin’s performance.

Institutional Impact of a Potential Inclusion

Should the S&P committee approve Strategy’s addition, passive index funds would be compelled to purchase nearly 50 million shares, worth an estimated $16 billion at current market prices. Such a move would indirectly turn institutional investors, including pension funds, into Bitcoin holders overnight by virtue of their index tracking obligations.

For Saylor, this outcome would validate a business model built on raising capital through debt and equity offerings, then deploying it into cryptocurrency. An approach once criticized as high-risk is now backed by profitability and liquidity metrics recognized by Wall Street.

Meeting the Index Standards

To qualify for the S&P 500, companies must be U.S.-based, publicly traded for at least 12 months, have a market capitalization above $22.7 billion, maintain a public float above 50%, record average monthly trading volumes of more than 250,000 shares, and report positive earnings over both the latest quarter and the last four combined. Strategy currently meets all these requirements, ranking among the strongest candidates in this quarter’s rebalancing cycle.

Stephens analysts noted that among 26 possible contenders, including Robinhood Markets Inc. and Carvana, Strategy demonstrated the highest float-adjusted liquidity ratio, further strengthening its case for inclusion.

Committee Discretion Still Key

Despite meeting all technical requirements, Strategy’s inclusion is not assured. The S&P committee exercises judgment beyond strict eligibility, weighing factors such as sector representation and overall market balance. Technology already holds an outsized share of the index, which may influence the decision.

Recent additions of Coinbase Global Inc. and Block Inc. reflect the committee’s acknowledgment of the growing digital asset sector. An S&P spokesperson declined to provide details, citing published methodology and committee discretion. Strategy has not commented on the potential listing.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice