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    Rajesh AK in Crypto News

    16 Feb 09:30 AM


    MicroStrategy listing in the S&P 500 index could expose millions to Bitcoin

    MicroStrategy’s market cap would need to rise another $3.7 billion and meet other eligibility criteria in order to have a chance of making it on the popular index, however.
    MicroStrategy, the largest corporate holder of Bitcoin (BTC), is slowly creeping toward being eligible for inclusion on the S&P 500 index — a milestone that could see Bitcoin firm appearing on “nearly every portfolio.”

    The Bitcoin-focusefirm would still need to meet strict eligibility criteria and secure a hefty market cap boost, however.

    Data shows MSTR moved up to 535th position among the largest publicly-listed companies in the United States on Feb. 15, following an eight-day trading span that saw MSTR rally 46%.

    Getting on the Standard and Poor’s 500 index — which tracks the top 500 largest companies listed on stock exchanges in the United States — requires a firm to meet several eligibility criteria, including a minimum market cap requirement and a positive sum of profits over the previous four quarters, (in addition to being profitable in the most recent quarter).

    At least 250,000 shares must have also been traded over the last six months and most of the shares must be in the public’s hands.

    Under current rules, candidate firms need a market cap of $15.8 billion to be eligible. MSTR’s market cap sits at $12.1 billion meaning its current price of $718 would need to rise to $937 if all else is equal.

    MicroStrategy’s stock has however posted a positive sum of profits over its last four quarters, including its most recent quarter.

    Even if the criteria are met, the S&P’s 11-member executive committee must approve MicroStrategy’s listing. The committee temporarily removed Tesla, an electric car manufacturer, from the S&P 500 ESG index in May 2022.

    The broad index fund rebalances on the third Friday of every March, June, September and December.

    Bitcoin in ‘nearly every’ portfolio
    Should MicroStrategy seek an S&P 500 listing and succeed, it could “spark a massive positive feedback loop” of Bitcoin exposure in nearly every ETF portfolio, according to Joe Burnett, senior product marketing manager at Bitcoin financial services firm Unchained.

    Source - Coin Telegraph