- Bitcoin’s price has doubled over the past year amid uncertainty around the Federal Reserve and the U.S. dollar.
- Strategy, led by Michael Saylor, may be added to the S&P 500 index, which could boost its visibility and investor interest.
- American Bitcoin, a mining firm supported by the Trump family, gained nearly 20% in its first day on the Nasdaq, raising Eric Trump’s stake to an estimated $950 million at peak value.
- Over 160 public companies globally, including Tesla and Block, now hold bitcoin on their balance sheets according to available listings.
- The potential S&P 500 inclusion and growing institutional interest mark a shift in mainstream acceptance of bitcoin-focused businesses.
Bitcoin has seen its price double over the past twelve months amid a sharp uptick in market activity, while a crisis at the Federal Reserve has raised concerns about the future of the U.S. dollar. At the same time, Strategy, a U.S. company focused on bitcoin holdings, could soon enter the S&P 500 stock index, as other companies and investors react to increased volatility in financial markets.
As of now, Strategy holds 630,000 bitcoin valued at approximately $70 billion. The company, converted from an enterprise software business into a bitcoin-focused acquisition firm under Michael Saylor in 2020, was added to the Nasdaq 100 index in December. If included in the S&P 500 during the index’s rebalancing on September 19, this would make Strategy the first company devoted primarily to bitcoin holdings on the benchmark index.
“The floodgates are starting to open,” Eric Trump told Bloomberg, referencing increasing crypto activity. In a statement to Reuters, he added, “crypto is exploding.” Shares of American Bitcoin, a mining firm backed by the Trump family, jumped nearly 20% to over $8 per share on their Nasdaq debut, raising his estimated stake value to $950 million at its peak. The company follows Strategy’s model by buying and holding bitcoin.
Despite hitting record levels in August, bitcoin’s price has returned to where it started this year. The introduction of index funds and exchange-traded funds (ETFs) tracking companies like Strategy has supported the price, even though Strategy’s share price has fallen 30% from its recent peak and remains flat for the year.
If the S&P Dow Jones Indices committee approves Strategy for the S&P 500, many funds would likely purchase its shares to mirror the new index composition. Requirements for index inclusion include a U.S. listing, a market value above $8.2 billion, over 250,000 shares traded daily, more than 50% of shares publicly available, and several quarters of positive earnings.
According to BitcoinTreasuries.net, at least 160 public companies worldwide now hold bitcoin, with 90 based in the United States. Well-known firms such as Tesla, Block (formerly Square), GameStop, and others have added bitcoin to their financial reserves. Dozens of companies are following these examples to potentially strengthen their stock performance.
The S&P index committee can still reject Strategy due to concerns about its primary focus on bitcoin acquisitions. The broader market continues to watch how institutional investment and shifts in index membership could impact the role of cryptocurrencies in traditional finance.
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