Strategy (formerly Micro Strategy), the largest public holder of Bitcoin, again achieves the headlines – this time for possibly qualifying for inclusion in the prestigious S&P 500 index.
On July 1, Jeff Walton, founder of MSTR True North, unveiled That the company will probably report a net income of $ 11 billion for the newly closed second quarter of the year.
Separately, Bloomberg estimated The figure can even be higher $ 14 billion in non-realized profit-dan also for the accounting standards for fair value that have been applied to his Bitcoin holdings. This places the company in the same profit bracket as tech giants such as Apple and Microsoft.
Walton emphasized that this milestone knew the last obstacle for admission to the S&P 500, because it meets the profitability criterion based on a cumulative positive income by four quarters. However, the final decision is based on the S&P index committee, where the debate is expected.
The S&P 500 consists of 500 best performing American public companies through market capitalization, which jointly represents approximately 80% of the total market capitalization of US shares. Access to this index requires compliance with different standards, including American place of residence, sufficient liquidity and positive income in the past four quarters.
Last year, strategy was added to various top stock indexes such as the Nasdaq 100 and MSCI World Index.
However, analysts such as Bloomberg’s Eric Balchunas have long seen an S&P 500 inclusion as ‘Holy Grail’ from the company. Such a movement would significantly validate the unconventional Bitcoin-Central approach of the company and increase its status in regular financing.
The shares of the company act well above the net asset value of his Bitcoin companies, mainly as a result of the demand for investors to indirect exposure to crypto.
With this premium, the company can issue shares, attract capital and acquire more Bitcoin. Although this is diluting the shareholders’ equity, it increases the Bitcoin-per-Share ratio, which helps stimulate the intrinsic value of the importance of each investor.
The strategy has also contributed to increased stock prices that all those in the S&P 500 index have surpassed since the company adopted the Bitcoin standard in 2020.
So far, Strategy has purchased 597,325 BTC, with a value of more than $ 63.9 billion, with a non -realized profit of more than $ 21 billion.
Interesting is that the news about a possible recording in the S&P index did not help to increase market sentiment, with Strategy shares with 6% in early trade on July 1 to $ 379.20 from the moment of press.