S&P 500 May Welcome Strategy as Early as Friday

Investors are watching closely as the S&P 500 prepares to announce fresh additions to its index later this week. Among the companies in contention is Michael Saylor’s bitcoin treasury firm Strategy (Nasdaq: MSTR), one of the most talked-about names in markets over the past year.

Good to know

1. The S&P 500 reshuffles quarterly, usually on Fridays.
2. Strategy (MSTR) holds 636,505 BTC worth around $71 billion.
3. The company’s market cap is close to $98 billion, well above the eligibility threshold.

Why Strategy Is in the Conversation

The S&P 500, often seen as the benchmark for American corporate strength, rebalances its roster every three months. Some companies are added, while others are removed based on size, liquidity, and trading activity.

Last quarter, Block (NYSE: XYZ) — the Bitcoin-focused company founded by Jack Dorsey — was welcomed into the index. Now, alongside names like Robinhood and Applovin, Saylor’s Strategy is considered a leading candidate for Friday’s announcement.

Meeting the Criteria

To be eligible for the S&P 500, companies must meet the following standards:

1. Be domiciled in the U.S.
2. Hold a market capitalization of at least $22.7 billion
3. Trade more than 250,000 shares monthly for six consecutive months
4. Maintain a liquidity ratio above 75%
5. Have common stock listed on an exchange such as Nasdaq or NYSE

Strategy not only satisfies these conditions but has also been among the best-performing U.S. stocks in 2024.

What makes Strategy unique is its treasury approach. The company currently controls more than 636,000 BTC, valued at roughly $71 billion, making it by far the largest corporate holder of Bitcoin in the world. For many in the crypto community, its potential addition to the S&P 500 would represent more than just another stock joining the index — it would highlight the growing role of Bitcoin in mainstream financial markets.

Some bitcoin advocates have even described the possibility as transformational, suggesting that the presence of MSTR could reshape how investors view both the asset and the companies that embrace it.