Will another crypto company enter the S&P 500?

Strategy (formerly Microstrategy) could soon follow Coinbase (the largest US crypto platform) as yet another crypto focused company that is a member of the S&P 500. This would bring a lot of credibility to the cryptosphere and also introduce new investors to digital currencies. Whether it succeeds depends, as always with Strategy, on the price of Bitcoin.

Saylor

MicroStrategy, which rebranded as Strategy in April, has become the largest holder of Bitcoin among publicly traded companies. The company currently holds an impressive total of around 600,000 Bitcoins, or a value of $60 billion.

This successful strategy could now allow the company to join the prestigious S&P 500 index, which includes the 500 largest publicly traded companies in the United States.

Of course, as Strategy’s stock price is largely determined by the price of Bitcoin itself, its entry into the S&P 500 largely depends on Bitcoin setting a new All Time High soon.

To qualify for inclusion in the S&P 500, a company must have posted positive profits for the past four quarters. However, Strategy has posted losses for the past three quarters but, thanks to an accounting trick, can convert the value of its Bitcoin purchases into their current value, suggesting that the company was profitable.