"Strategy Expected to Be Included in S&P 500 as Early as September"

Strategy, the company holding the largest amount of Bitcoin (BTC) as a single entity, is analyzed to potentially be included in the S&P 500 index next month.

On the 15th (local time), the U.S. asset management firm Strive stated in a report, "Strategy now has only one hurdle left—a 'committee meeting'—to be added to the S&P 500," adding, "Inclusion in the S&P 500 could happen as early as September."

They particularly evaluated that the increase in second-quarter earnings has brought Strategy a step closer to being included in the S&P 500. The report stated, "Strategy’s market capitalization already exceeded $100 billion long ago and has been meeting the standards for inclusion for some time," and added, "The explosive profit turnaround in the second quarter resolved the 'last 12 months profit' criterion, which had held the company back." Furthermore, "Strategy’s annual return reached 179% this year, significantly surpassing the S&P 500’s 22%," and "Strategy’s net profit for Q2 ($10 billion) ranks in the top 10, so the possibility of S&P 500 inclusion is very high."

They also focused on the impact that Strategy’s S&P 500 inclusion could have. Strive reported, "Inclusion in the S&P 500 would allow tens of millions of Americans to indirectly hold Bitcoin through pensions, 401(k) plans, and other means," adding, "Mass adoption would make Bitcoin an indestructible asset."

However, they added that inclusion in September is not guaranteed. The report stated, "Despite Tesla’s outstanding returns in 2020, S&P declined to include it in the index due to concerns about volatility," and "Strategy’s current volatility is twice as high as Tesla’s."