TLDR
- MicroStrategy (MSTR) could be added to the S&P 500 index as early as September 5, 2025
- The company holds 597,325 Bitcoin worth $65.1 billion on its balance sheet at current prices
- MSTR stock has risen 173% over the past 12 months with a market cap of $96 billion
- Second quarter results showed $10 billion in net income and $32.60 earnings per share
- Analysts give MSTR a Strong Buy rating with average price target of $552.29, implying 65% upside
Strategy could join the S&P 500 index as soon as September 5. The company’s shareholders have been waiting for this moment for several quarters.
The stock has performed exceptionally well over the past year. MSTR shares have jumped 173% in the last 12 months. The company now has a market capitalization of $96 billion.
Strategy, formerly known as MicroStrategy, meets all requirements for S&P 500 inclusion. The company has shown consistent profitability in recent quarters. S&P Dow Jones conducts quarterly rebalancing to add and remove stocks based on performance.
The second quarter delivered strong financial results for the company. Net income reached $10 billion, translating to $32.60 per share. Revenue came in at $114.5 million for the period.
Subscription services grew nearly 70% year-over-year. While the company still operates a software division, it has transformed into primarily a Bitcoin acquisition vehicle.
Bitcoin Holdings Drive Value
As of June 30, MicroStrategy held 597,325 Bitcoin on its balance sheet. These holdings are worth approximately $65.1 billion at Bitcoin’s current price of $109,000 per token.
The company reported a Bitcoin yield of 19.7% year-to-date during its second quarter earnings. This metric tracks the increase in Bitcoin holdings relative to the company’s share count.
Index inclusion would force passive funds to purchase MSTR shares. Exchange-traded funds and mutual funds that track the S&P 500 must buy shares of new additions. This requirement typically drives up stock prices.
Market Impact and Trading Dynamics
If added to the index, MicroStrategy would become the first Bitcoin-treasury company in the S&P 500. The move would provide index funds with indirect exposure to cryptocurrency markets.
Passive funds tracking the index must replicate new constituents at the effective date. This requirement minimizes tracking error for fund managers. The forced buying could create immediate upward pressure on MSTR shares.
Historical data shows companies added to major indices experience average price increases of 3-5% short-term. This boost comes from institutional buying requirements rather than fundamental changes.
Wall Street analysts remain bullish on the stock. Fourteen analysts cover MSTR with a consensus Strong Buy rating. The rating breaks down to 12 Buy recommendations, one Hold, and one Sell.
The average price target sits at $552.29 per share. This target implies 65% upside potential from current trading levels. Recent highs reached around $150 per share in late August.
Options and futures trading could see increased activity around the announcement window. Traders often position ahead of index inclusion events. Volume typically spikes during the actual inclusion period.
The cryptocurrency market could benefit from positive MSTR momentum. Past Bitcoin acquisition announcements by MicroStrategy have moved BTC prices. A 10% rally in MSTR historically correlates with 2-3% gains in Bitcoin spot prices.
Bitcoin support levels currently sit around $58,000 with resistance at $65,000. Exchange inflows and on-chain metrics suggest accumulation ahead of potential news. The Bitcoin Fear and Greed Index reads neutral at 50 as of September 1.
S&P Dow Jones manages the quarterly rebalancing process for the index. The committee evaluates companies based on market weighting and performance metrics. MicroStrategy now meets the profitability requirements that previously kept it out of consideration.
