Strategy Inc. Qualifies for S&P 500 Inclusion Fueled by $70B Bitcoin Holdings
Bloomberg reports that if added to the index, the company could see an estimated $16 billion in share purchases from passive funds, pending a committee review.
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Fact Check
Multiple sources, notably Ainvest and Yahoo Finance, state that MicroStrategy (referred to as Strategy Inc.) has met the eligibility criteria for S&P 500 inclusion. The evidence consistently corroborates that this qualification is a direct result of its large Bitcoin holdings and new accounting rules that positively impact its reported earnings. While the exact '$70B' figure for the holdings is not explicitly verified in the provided text, the central claims of the statement are strongly supported.
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Summary
Strategy Inc., formerly MicroStrategy, now meets the eligibility criteria for the S&P 500 index, according to Bloomberg. This development is attributed to its substantial $70 billion in Bitcoin holdings and $140 billion in quarterly unrealized profits. Inclusion in the index could trigger an estimated $16 billion in share purchases by passive funds, although the final decision is contingent on a review by the S&P 500 committee, which will assess the company's volatility and the index's industry balance.
Terms & Concepts
- S&P 500 Index: A stock market index representing the performance of 500 of the largest publicly traded companies in the United States.
- Passive Funds: Investment funds that track a market index, like the S&P 500. They automatically buy shares of companies added to the index to mirror its composition.
- Bitcoin Holdings: Refers to the amount of Bitcoin a company holds on its balance sheet as a corporate treasury asset.