Jeff Walton, a popular Bitcoin podcaster and strategy investor, recently pointed out that MicroStrategy, now known as Strategy, is on track to join the S&P 500 Index. In a post on the X app, Walton wrote that the company’s second quarter earnings, which are set to be released on August 5th or 6th, could be a major blowout quarter for the company. This could potentially qualify Strategy for inclusion in the S&P 500, which is the US stock market benchmark comprised of the 500 largest companies in the United States by total market capitalization.
If Strategy does join the S&P 500, it could cause its share prices to soar, similar to what happened this week when Coinbase, the largest US cryptocurrency exchange, was slated to join the index. This news caused Coinbase’s share prices to jump from under $200 to $266, resulting in a 33% gain for shareholders like Ark Invest’s Cathie Wood, who is very bullish on crypto assets and Coinbase stocks.
Walton believes that Strategy could deliver a similar performance in August if it makes it onto the index. The company’s founder, Michael Saylor, has been credited with innovating a strategy that guarantees returns on BTC investments to its clients through fixed return corporate bonds that retain the option to convert these notes into Strategy stocks. In April, the company’s stock’s 1-year return on investment surpassed Jim Cramer’s “Magnificent Seven” for market returns.
In a more recent update, Saylor informed that Strategy is winning the “financial triple crown” due to its Bitcoin-based strategy. He stated that the company is currently in first place for the quarter, the year, and since adopting the Bitcoin standard. Saylor believes that Strategy’s strategy works because it is built on BTC.
In conclusion, Walton believes that Strategy’s potential inclusion in the S&P 500 could be a major catalyst for the company’s stock prices, similar to what happened with Coinbase this week. With the company’s strong performance and innovative Bitcoin-based strategy, it is likely that Strategy will continue to see success in the future.
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