Strategy, the largest public holder of Bitcoin (formerly known as MicroStrategy), is on the verge of qualifying for inclusion in the prestigious S&P 500 index following a surge in net income. Analysts project the company could report up to $14 billion in unrealized profit for Q2 2025, driven by its massive Bitcoin holdings.
Key Highlights
- Unprecedented Earnings: Strategy’s projected $11–14 billion net income places it alongside tech giants like Apple and Microsoft.
- S&P 500 Criteria Met: The company fulfills the profitability requirement with cumulative positive income over the last four quarters.
- Bitcoin-Centric Strategy: With 597,325 BTC (valued at ~$63.9 billion), Strategy’s unrealized gains exceed **$21 billion**.
Why S&P 500 Inclusion Matters
Inclusion in the S&P 500 would:
✅ Validate Strategy’s Bitcoin-focused business model
✅ Boost mainstream financial credibility
✅ Attract institutional investors
Despite meeting technical criteria, the final decision rests with the S&P Index Committee, where debates are expected due to Strategy’s unconventional approach.
Market Reaction and Performance
- Stock Performance: Strategy shares have outperformed all S&P 500 stocks since adopting the Bitcoin standard in 2020.
- Recent Dip: Shares fell 6% on July 1, 2025, despite the S&P 500 speculation, trading at $379.20.
👉 Explore how Bitcoin investments reshape corporate finance
FAQs
Q: What are the requirements for S&P 500 inclusion?
A: Companies must be US-domiciled, highly liquid, and show positive earnings over four consecutive quarters.
Q: How does Strategy’s Bitcoin strategy benefit shareholders?
A: By issuing shares to buy more Bitcoin, the company increases the BTC-per-share ratio, enhancing intrinsic value.
Q: Why hasn’t the S&P 500 news boosted Strategy’s stock price?
A: Short-term market sentiment can be volatile; long-term investors focus on the firm’s Bitcoin accumulation and earnings potential.
Conclusion
Strategy’s potential S&P 500 inclusion marks a watershed moment for Bitcoin-backed enterprises. With $21 billion in unrealized gains and a proven growth model, the company stands at the crossroads of crypto innovation and traditional finance.