Joe Burnett, a crypto analyst and senior product market manager at Bitcoin financial platform Unchained, has predicted that including MicroStrategy’s stock in the S&P 500 index can result in widespread adoption of Bitcoin by both retail and institutional investors.
In a video shared on his X handle, Burnett explained that this inclusion could result in a very positive dynamic feedback loop. The market, according to Burnett, would automatically start drawing the monetary premium from passive index funds to Bitcoin’s market.
MicroStrategy’s stock has been steadily increasing, putting it on the cusp of eligibility for inclusion in the S&P 500 index, as per CoinMarketCap data.
Notably, many other crypto pundits and experts have also suggested if MicroStrategy attains this milestone, the composition of investment portfolios across the board might change drastically. They believe more investors would now consider including Bitcoin tokens in their portfolios compulsory.
For a company to be listed in the S&P 500 index, it must meet specific criteria, including a minimum market capitalization of $15.8 billion, positive gains in the last four quarters, and compliance with other trading and financial volume standards.
MicroStrategy appears to be a strong contender for inclusion, given its recent market performance and strategic focus on Bitcoin. As of February 15, following a surge in stock price, MicroStrategy ranked as the 535th largest firm in the United States, with a market capitalization of around $12.1 billion and notable gains in recent quarters.
As the world’s largest corporate Bitcoin holder, MicroStrategy’s stock is likely influenced by the current Bitcoin price rally. Furthermore, by being included in the S&P 500, the passive investments in the index funds may positively influence MSTR value, as the funds will be forced to purchase MSTR at the current market price to obtain their mandated allocations.
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