Analysis: Strategy Set to Be Included in S&P 500 in September, Bitcoin's Leap to Blue-Chip Asset Status Is Underway

BlockBeats News, August 15th, Asset management company Strive published a market commentary on Strategy, stating that Strategy, as the world's largest Bitcoin treasury company, is one step away from joining the S&P 500 Index. If this milestone can be achieved, it will fundamentally cement Bitcoin's position in the U.S. financial landscape. Strategy's market value exceeds $100 billion, already surpassing the market cap threshold of the S&P 500. However, the inclusion criteria for the S&P 500 is not only based on market cap but also requires the company to be U.S.-registered, listed on a major exchange, and to have been profitable in the past quarter and year. The latter profitability requirement has always been an obstacle for Strategy.

Recently, Strategy released its second-quarter financial report, and its profitability over the past 12 months has cleared the final hurdle, making it possible to be included in the S&P 500 as early as September. However, Strategy's inclusion is not guaranteed. In 2020, the S&P 500 rejected Tesla and instead chose the much smaller Etsy. While regulators did not provide a clear reason, market analysts pointed out that Tesla's volatility may have been a concern, a similar dilemma for Strategy. With a five-year beta coefficient of 3.86, it would become the most unstable company in the S&P 500, nearly twice as volatile as Tesla.

Whether or not Strategy is included in the S&P 500 in September, one thing is clear: Bitcoin's leap from a monetary experiment to a blue-chip asset has already begun.