Matthew Sigel Predicts Block Could Join S&P 500, Not MicroStrategy
Matthew Sigel, head of digital asset research at well-known investment firm VanEck, said in the latest X post that Block (formerly Square) may become the first Bitcoin holder in the S&P 500 Index.
Require
He noted that to be included in the index, stocks must meet six criteria: 1) market capitalization exceeds $18B, 2) the proportion of shares held by public investors should be higher than 10%, 3) the most important earnings were positive in the most recent quarter and The sum of the first four quarters of GAAP earnings should also be positive, 4) high liquidity, 5) IPO time of more than 12 months, and 6) US domicile.
He stressed that Block meets earnings standards after releasing its first-quarter 2024 earnings report. However, he also said that inclusion in the S&P 500 Index is not automatic and depends on the discretion of the index committee. Historically, companies that meet all requirements have been included within 3 to 21 months, with the exception of LULU, which was included within 65 months.
He also noted that industry diversity is a key element of the index committee’s efforts to align the S&P 500’s industry makeup with the broader economy. Notably, Block originally purchased $50 million in Bitcoin in October 2020 and purchased an additional $170 million in February 2021. CEO Jack Dorsey is a long-time supporter of Bitcoin.
MSTR, COIN Unlikely?
MicroStrategy (MSTR), a leading corporate Bitcoin holder, was recently added to the Nasdaq 100, but despite strong performance in 2024, it is unlikely to join the S&P 500 anytime soon. Eric Balchunas, Bloomberg suggestion Even if MSTR qualifies, the S&P 500 Inclusion Committee may block it. Bitwise predicts that Coinbase may join the S&P 500 this year.
One of Sigel’s followers asked him about Coinbase’s inclusion in the index, claiming that it also met all six criteria. Although the cryptocurrency firm met the requirements, VanEck’s head of digital asset research called it a “controversial choice” given its “pure cryptocurrency exposure.”
