As a crypto investor, I find it intriguing that Matthew Sigel, the head of digital assets research at VanEck, posits that Block (previously known as Square) could potentially be the first Bitcoin holder to break into the esteemed S&P 500 stock market index.
To be considered for inclusion, a stock must meet certain requirements. Initially, the company’s market capitalization should surpass $18 billion. Furthermore, at least 10% of its shares should be owned by public investors. Additionally, the company should have reported profits in the last quarter and also show positive GAAP earnings for the four quarters preceding that.
Some additional requirements include having high liquidity and being domiciled in the U.S.
The block met its final requirement, which was related to earnings, in the first quarter of 2024. Yet, getting included in the S&P 500 isn’t always based on a strict formula but is decided by the Index Committee’s discretion,” he explained.
Initially, Block invested a total of $220 million in Bitcoin; first, in the month of October 2020, he spent $50 million, and then in February 2021, he added another $170 million to his investment.
Jack Dorsey, previously the CEO of Twitter (currently identified as X), is widely recognized as a long-term supporter of Bitcoin.
Other crypto contenders
According to U.Today’s report, MicroStrategy, a significant Bitcoin owner among corporations, has been included in the Nasdaq-100 index, which primarily consists of technology companies.
It’s quite unlikely that Mastercard (MSTR) will join the S&P 500 in the near future, even though it had a strong performance in 2024.
According to Eric Balchunas, Bloomberg’s senior ETF analyst, there’s a possibility that the S&P 500 committee could prevent a company from being added to the index, even if it meets all the necessary qualifications.
According to U.Today’s report, Bitwise anticipates that Coinbase could become part of the S&P 500 this year. Sigel acknowledges, though, that adding Coinbase to the index might spark more debate among the committee due to its roots in the cryptocurrency industry compared to Block Inc.
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2025-01-09 19:04