Strategy Has 91% Chance of S&P 500 Eligibility: Analyst
Michael Saylor’s MicroStrategy (MSTR) has a 91% chance of qualifying for the S&P 500 if Bitcoin does not drop below $95,240 before June 30, according to analyst Jeff Walton. MSTR requires cumulative positive earnings over the past four quarters to be eligible, having posted net losses in the last three quarters. The company holds 592,345 Bitcoin, the largest among public firms. MSTR began applying accounting rule ASU 2023-08 on January 1, which mandates revaluation of Bitcoin holdings at fair market value. Walton noted that historically, Bitcoin has dropped more than 10% in only 8.7% of six-day periods since 2014. As the quarter ends, the likelihood of Bitcoin maintaining its value increases. Recent geopolitical tensions caused Bitcoin to dip below $100,000 but is currently trading at $106,200. If MSTR qualifies, it would be the second crypto firm in the S&P 500 this year, following Coinbase.
