MicroStrategy owns more Bitcoin than any other public company in the U.S.. Their market cap is $11.87 billion at the time of writing and they are close to join the S&P 500 list. This list is a special group of the 500 biggest companies in the U.S., included as top 3 companies like Microsoft ($3 trillion market cap), Apple ($2.8T) and NVIDIA ($1.79T) in order.
To enter S&P500 a company’s minimum market cap must be $15.8 billion at the moment, but this minimum market cap threshold can adjust accordingly (in September 2023 this number was $12.7 billion). However there are other requirements to meet, for example most of a company’s shares must be in the public’s hands, or has a positive sum of the previous four quarters of earnings, as well as the most recent quarter. MicroStrategy is on its way to reach this as its value is growing fast because of people are excited about Bitcoin and there’s running a bullish market.
MicroStrategy’s executive chairman Michael Saylor is the last standing person today from the names like Sam Bankman-Fried (FTX), Do Kwon (Terra), or Changpeng Zhao (Binance) whom success and failure led the crypto market previously. The company has about 190,000 Bitcoins, worth more than $9 billion calculated with its actual price. If the price of Bitcoin keeps going up, MicroStrategy’s value could increase quickly, especially if Bitcoin reaches its highest price ever of $69,000 again.
In February, the price of MicroStrategy’s stock went up by more than 50% because assets flooding into Bitcoin after the SEC approved 11 U.S.-listed exchange traded funds (ETFs) to track Bitcoin on 11th of January. The price of Bitcoin itself has gone up nearly 26% in the same period and worth about $52,000.
As Joe Burnett, the senior product marketing manager at Unchained declared:
Rising market cap and TTM profitability could position $MSTR for S&P 500 eligibility, pending U.S. Index Committee approval.
If MSTR is included, it could spark a massive positive feedback loop enabling #bitcoin to begin automatically infiltrating nearly every portfolio. pic.twitter.com/2e4m6oXGJu
— Joe Burnett (????)³ (@IIICapital) February 15, 2024
Well time will tell if such a big Bitcoin connected company could achieve the popular stock market index’s requirements. But MicroStrategy has a good chance to enter S&P500 this year with the lead of Michael Saylor.
Featured image source: medium
