Bitcoin or through "breaking into" the S&P 500! Strategy (MSTR.US) has crossed the profitability threshold for inclusion.

Any investor holding S&P 500 index components may soon indirectly hold Bitcoin as well. Jeff Walton, a senior analyst at Strategy (MSTR.US), said on social media platform X this week that the company has crossed the final threshold to qualify for inclusion in this prestigious index, which could make Bitcoin an indirect index asset. Since Strategy was included in the Nasdaq 100 index, the core question has been whether this publicly-traded company with the largest amount of Bitcoin can next step into the S&P 500. But there has been a key obstacle for months: 12 months of consistent profit. Under previous accounting standards, Strategy was forced to report their Bitcoin holdings at impairment prices, leading to negative financial reports due to unrealized losses. However, after the Financial Accounting Standards Board (FASB) relaxed rules to allow companies to record digital assets at fair value, the company finally met the profit standards. Walton pointed out that with Bitcoin closing at around $107,000 on Monday, Strategy is expected to report a profit of $14 billion for the second quarter, with a net profit of $11 billion over the past 12 months. "This clears the final hard criterion for Strategy's inclusion in the S&P 500." However, meeting the criteria does not necessarily guarantee successful inclusion. Walton said that the S&P 500 Index Committee has complete discretion when selecting components, and this process may be "controversial and much discussed." The committee typically considers factors such as index balance, economic representation, and stability. Analysts are divided on whether Strategy's hoarding of Bitcoin will be a hindrance, with some views suggesting that the company currently operates more like a closed-end fund. When discussing the possibility of Strategy's inclusion, Antti Petajisto, head of stock investments at Bruker Corporation, told Bloomberg last year, "S&P excludes ETFs and closed-end funds from the index, as they want the components to be operating entities rather than investment funds." Regardless, market observers will have to wait until the third week of September to know the results - the window for inclusion for the second quarter has passed. If successful, the company will be the second crypto-related company to join the S&P 500 this year, following Coinbase in May. Bitcoin content creator "Alexes Nakamoto" said, "Inclusion in the S&P 500 means that all mainstream index funds will hold Strategy stock, further legitimizing Bitcoin in the mainstream." Currently, Strategy's pre-market stock price is $396, with a market value of $113 billion. The company holds 597,325 Bitcoins, valued at nearly $64 billion, accounting for almost 3% of the total supply of the asset.