S&P 500 Bitcoin Involvement - Could a Similar Strategy Follow Block Inc.'s Adoption?
Block Inc. and Strategy Join the S&P 500: A Growing Presence of Bitcoin on Wall Street
Block Inc., the financial services company founded by Jack Dorsey and Jim McKelvey in 2009, has made a significant stride by being included in the S&P 500 Index. This move is seen as a sign of growing Bitcoin exposure on Wall Street by crypto sector leaders.
Block Inc., initially designed to empower small businesses to accept card payments through mobile devices, has expanded into other financial services like Cash App (P2P payments), Square Capital for loans, and a PoS (Square PoS). Last year, Dorsey announced that 10% of its revenue from its crypto products would be used to acquire BTC.
The inclusion of Block Inc. in the S&P 500 Index is great for "broader exposure," according to Amrita Ahuja, COO and CFO of Block Inc. Hank Huang of crypto research firm Kronos Research views this inclusion as a sign of growing trust in crypto by TradFi players. Block Inc. replaced the Hess Corporation in the S&P 500 Index on 18 July, and the official trading began on 23 July.
Meanwhile, Strategy (formerly MicroStrategy), a Bitcoin corporate treasury pioneer, is indeed a strong contender for inclusion in the S&P 500 Index as of mid-2025. If Strategy is included, there will be four BTC-aligned firms on the S&P 500 Index, allowing investors to have more stake in the crypto sector.
Strategy qualified for consideration for S&P 500 inclusion as of July 1, 2025, based primarily on its substantial Bitcoin holdings (around $63.5 billion) and strong earnings performance driven by Bitcoin price appreciation. The company is expected to report net income exceeding $11 billion for Q2 2025, with some estimates going as high as $14 billion in unrealized profits due to accounting rules on Bitcoin valuation. This profitability surpasses the minimum earnings criteria required for S&P 500 inclusion.
Strategy satisfies other S&P 500 criteria such as US domicile, market liquidity, and cumulative positive earnings over the last four quarters. The S&P Index Committee still has discretion over final inclusion, but analysts consider this a significant step. Historical precedent includes Coinbase’s inclusion earlier in 2025 as a major crypto-related company, with Tesla and Block Inc. already incorporated representing firms with Bitcoin-related business aspects.
Market reactions, such as a 15% jump in Strategy’s perpetual preferred stocks, indicate investor anticipation of imminent index addition. Thus, Strategy’s financial metrics and extensive Bitcoin focus make it a potential S&P 500 constituent, likely to join existing Bitcoin-related companies in the index in the near term, pending the final decision of the S&P Committee.
As of the latest update, Tesla holds 11,509 BTC, Coinbase has 9,267 BTC, and Block Inc. has 8,584 BTC. Block Inc.'s stock, XYZ, posted gains of 0.54% on 21 July, but rallied by 10% during the inclusion announcement.
[1] CoinDesk [2] Bloomberg [3] Yahoo Finance [4] CNBC
- Amidst growing crypto sector trust by TradFi players, the financial services company Block Inc., known for its Bitcoin acquisitions, has gained broader exposure with its inclusion in the S&P 500 Index.
- Block Inc., which offers services like Cash App and Square PoS, is not the only Bitcoin-aligned firm poised for S&P 500 inclusion, as Strategy, the Bitcoin corporate treasury pioneer, is seen as a strong contender for mid-2025.
- Strategy, with its substantial Bitcoin holdings and strong earnings performance, has met all but the final S&P 500 criteria for inclusion, such as US domicile, market liquidity, and cumulative positive earnings over the last four quarters.
- The expansion of Bitcoin presence on Wall Street is further evident with the increasing number of Bitcoin-related firms in the S&P 500 Index, including Tesla, Coinbase, and more recently, Block Inc.
- The interplay of traditional finance and emerging technology continues to shape the financial landscape, with businesses such as Block Inc. and Strategy demonstrating an increasing interest in crypto assets, particularly Ethereum and Bitcoin, in their business models.
