According to Bloomberg, MicroStrategy, a software maker often considered a Bitcoin hedge fund, now has a market capitalization higher than nearly half of the companies in the S&P 500 Index. This is due to the strong crypto rally this year. However, the company's inclusion in the index is not straightforward, as it is largely viewed as a leveraged holding company for Bitcoin.
MicroStrategy is one of the largest publicly-traded holders of Bitcoin, having started accumulating the cryptocurrency as an inflation hedge in 2020. The company currently holds 124,946 Bitcoins, worth approximately $6.8 billion. If MicroStrategy were to be included in the S&P 500, it would be one of the index's largest companies with a direct link to Bitcoin. This could be seen as symbolically significant for the $2.6 trillion crypto industry, especially after the collapse of multiple prominent firms in 2022.
Despite the company's market capitalization, its inclusion in the S&P 500 is not guaranteed. MicroStrategy does not currently meet the requirements for inclusion, but its potential entry into the index would likely be viewed as a sign of renewed bullishness toward digital assets. This comes even as many Wall Street banks and professionals continue to shun cryptocurrencies.
