Strategy Nears S&P 500 Inclusion After Bitcoin-Driven Q2 Surge
Strategy, a Bitcoin-backed firm, reported record Q2 results, fueling its bid for S&P 500 inclusion. It posted $14 billion in operating profit and $10 billion in net income, equivalent to $32.6 diluted EPS. Revenue reached $114.5 million, up 2.7% year-over-year, with subscription revenue surging nearly 70%. The company holds 632,457 BTC, yielding 25.4% year-to-date. New fair value accounting standards allowed recognition of unrealized gains from its Bitcoin holdings, enhancing its earnings as BTC traded above $100,000. Management raised 2025 guidance to $34 billion operating income, $24 billion net income, and $80 EPS, assuming Bitcoin hits $150,000. Strategy already meets S&P 500 criteria: US listing, $8.2 billion+ market cap, sufficient trading volume, and positive financial results. The S&P Dow Jones committee could announce inclusion on September 5, effective September 19. Inclusion would mark a milestone as the first Bitcoin-backed company in the S&P 500, underlining institutional acceptance of digital assets.
Bullish
Strategy’s potential S&P 500 inclusion is bullish for Bitcoin and crypto markets. Inclusion in a benchmark index typically drives institutional and passive fund inflows. Similar to when Tesla joined the S&P 500, demand for its stock rose and liquidity increased. Bitcoin-backed company inclusion signals regulatory and institutional confidence in digital assets. In the short term, traders may see a price boost as funds adjust allocations. In the long term, this milestone could pave the way for more crypto-based firms in traditional indices, promoting broader market stability and adoption.