Michael Saylor’s company, now called Strategy Inc. after rebranding from MicroStrategy, has quietly but firmly positioned itself to join the S&P 500. It’s not just meeting the standard checklist of requirements, like market cap and profitability, but doing so in a way no other company has tried before. The fuel behind this momentum is its bold move to stack massive amounts of Bitcoin (BTC) on the balance sheet. If the company is added, it would become the very first Bitcoin-centered firm in the index, which could set off a chain reaction. Passive investment funds would have no choice but to buy its stock, and in doing so, gain indirect exposure to Bitcoin. For Saylor, it might feel like validation of the strategy he’s been preaching for years.
Key Takeaways
- Eligibility: Strategy Inc. now checks all the S&P 500 boxes, including a market cap above $22.7 billion and four consecutive quarters of net income.
- Bitcoin’s Role: Profitability was made possible thanks to unrealized gains on its Bitcoin stash, recognized under new accounting standards.
- Potential Impact: If included, billions could flow in from index-tracking funds, giving Bitcoin indirect recognition as a treasury asset.
- Committee Discretion: The S&P Dow Jones Indices committee still has the final word, weighing factors like volatility and sector balance.
Saylor’s Bitcoin Bet Pays Off
Michael Saylor, Strategy Inc.’s executive chairman, has been making the same argument for years: Bitcoin belongs on corporate balance sheets. What started in 2020 with bold, early buys has now grown into the largest public corporate holding of Bitcoin in the world. As of late 2025, that amounts to more than 636,505 BTC. It’s a staggering figure that once seemed reckless to many on Wall Street. But in hindsight, at least for now, the bet looks far less like a gamble and more like foresight.
The real turning point came earlier this year when new fair-value accounting standards kicked in, letting companies record unrealized gains from digital assets directly in their income statements. For Strategy Inc., this was huge. It meant the company’s Bitcoin holdings could push net income into the green, satisfying the S&P’s profitability requirement. The latest earnings report, showing a strong profit, was largely a product of this accounting change combined with Bitcoin’s climb in value.
Meeting the S&P 500 Criteria
To get into the S&P 500, a company needs more than size. It must be U.S.-based, highly liquid, profitable, and worth at least $22.7 billion by market cap. Strategy Inc. now ticks every one of those boxes. Its market cap has soared, and liquidity is high enough to pass without question. Analysts are already drawing comparisons to Coinbase and Block (formerly Square), both of which helped open the door for crypto-linked firms in traditional indexes.
Still, this is not an automatic pass. The S&P Dow Jones Indices committee has leeway to look beyond the numbers. And volatility is the elephant in the room. Strategy Inc.’s stock has been swinging wildly, with 30-day price movements averaging 96 percent. That level of instability could make committee members hesitate. Another wrinkle is sector weighting. Technology already dominates the index, so adding another volatile tech-adjacent firm may not be an easy sell.
Impact of Inclusion
If the decision falls in Strategy Inc.’s favor, the ripple effect could be enormous. Roughly $10 trillion in passive funds, including pension plans and ETFs, are tied to the S&P 500. All of them would be compelled to purchase Strategy Inc. stock to align with the index. This would likely funnel billions into the company and, indirectly, into Bitcoin exposure itself. For Bitcoin advocates, it would mark a kind of mainstream acknowledgment that digital assets are here to stay.
The final decision is expected on September 5, with any revisions set to take effect September 19. Until then, speculation will continue, but one thing is clear: Michael Saylor’s high-risk play has pushed Bitcoin closer than ever to the heart of Wall Street.
Related FAQs
Q: What is the S&P 500?
A: The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the United States. It is a benchmark for the overall health of the U.S. economy.
Q: How does a company get added to the S&P 500?
A: To be eligible, a company must be a U.S. company, have a market capitalization of at least $22.7 billion, a positive net income over the past four quarters, and high liquidity. A committee makes the final decision.
Q: Why is Michael Saylor’s Bitcoin strategy so important?
A: Michael Saylor’s strategy of using Bitcoin as a primary corporate treasury asset has created a new business model. The success of this strategy, and the potential for S&P 500 inclusion, could influence other companies to consider Bitcoin as a legitimate treasury asset.
