Strategy’s Potential S&P 500 Inclusion Amid Bitcoin Purchase Slowdown
- Strategy, the largest corporate holder of Bitcoin, has a projected 70% chance of joining the S&P 500 by December.
- The company is expected to report a $3.8 billion gain from fair-value Bitcoin accounting on October 30.
- In October, Strategy acquired only 778 Bitcoin, marking a decline of about 78% from September’s purchases of over 3,500 BTC.
- Several digital asset treasuries have seen their market net asset value (mNAV) fall below critical thresholds this year.
- Despite favorable earnings projections, Strategy holds a “B-” credit rating from S&P Global Ratings, indicating speculative status.
The upcoming earnings report is viewed as a significant catalyst for Strategy amidst broader concerns about digital asset treasuries’ sustainability and mNAV pressures affecting multiple firms.
With an estimated $3.8 billion gain anticipated in the next earnings release, the likelihood of inclusion in the S&P could reach up to 70%. (Source)
