MicroStrategy shares have increased nearly 200% in the last year and reached $800 yesterday, increasing the company's market value to $12.5 billion. Experts evaluate this success and suggest that there may be an insider in the S&P 500 index.
More than 190 thousand Bitcoins held by MicroStrategy reached a value of $ 10 billion as the BTC price exceeded $ 52,500. This success leads to speculation that the company may be included in the S&P 500 index in the near future.
Reached 12.4 billion dollars
It is stated that MicroStrategy has not yet fully met the minimum market value of $15.8 billion required to be included in the S&P 500 index, which includes the 500 largest companies in the USA. However, MicroStrategy's value has exceeded $12.4 billion and the company's market value has increased by nearly 200% in the last year. Shares have seen a significant rise with the increase in Bitcoin price in recent days, reaching over $800.
An entry into the S&P 500 could increase the price of MSTR, then Bitcoin, and then MSTR again
Analysts state that MicroStrategy's inclusion in the S&P 500 index may affect even investors who are not considering buying Bitcoin. Bitcoin-focused platform Unchained analyst Joe Burnett used the following statements in his tweet on the subject:
"If MicroStrategy is included in the S&P 500, Bitcoin will start to enter every portfolio, albeit indirectly. In addition to the market value of companies exceeding $ 15 billion, they must also be profitable in their last quarterly earnings reports. That is why Tesla is in the S&P 500, but Coinbase is not. Here If MicroStrategy meets these conditions, it will seriously increase the trust in it and Bitcoin. The increase in the price of Bitcoin will automatically increase the MSTR market value. This will increase the number of Bitcoin purchases and this can turn into a complete spiral. ."
Usually there is a decline, be careful
Speaking to Decrypt, CoinShares analyst James Butterfill stated that MicroStrategy shares benefit from ETFs and said: "MicroStrategy's entry into the S&P 500 will also increase the money coming from asset managers and ETFs. So those asset managers will also get extra money from MSTR." However, it should not be forgotten that such index entries are usually followed by price declines..."