MicroStrategy’s accession to the S&P 500 stock index is making the crypto world fantasize. What if this small earthquake in the stock market was the trigger for widespread adoption of Bitcoin? Analysis of an event that could be a landmark.
MicroStrategy, the Bitcoin Trojan
With 190,000 Bitcoin in reserve, valued at more than $3.7 billion, MicroStrategy is by far the largest corporate holder of the queen cryptocurrency. The company founded by Michael Saylor has even become a sort of Bitcoin proxy, allowing traditional investors to gain exposure to Bitcoin without taking the plunge.
And this Bitcoin Trojan horse is starting to interest the elite of the stock market. By reaching 12 billion capitalization, MicroStrategy already meets several eligibility criteria to integrate the holy of holies of the stock market: the S&P 500 index. Certainly, 3.7 billion additional capitalization is still necessary. But with a soaring share price, driven by positive results, the goal is getting closer.
One thing is certain: Michael Saylor is now putting all his strength into the battle to propel MicroStrategy into the S&P 500. The manager understands it well, a place in this index full of promise would be a cool kiss effect for Bitcoin. Analysis.
The S&P 500 index, the holy of stock market holies
Joining the S&P 500 index would be a real springboard for MicroStrategy and Bitcoin. With its 500 star stocks, the index weighs more than $41.9 trillion, the equivalent of Japan’s GDP.
For comparison, the Nasdaq 100, which is expensive for technology stocks, “only” represents 11,000 billion in capitalization. Suffice to say that the S&P 500 is the Holy Grail of the ultimate stock market.
Concretely, appear there would give MicroStrategy privileged access to the colossal sums invested in index funds and index-backed ETFs. Enough to boost its stock price and, in turn, its Bitcoin purchasing capacity.
The icing on the cake is that MicroStrategy’s presence in the S&P 500 index would also place Bitcoin on the radar of millions of individual investors. The latter would find themselves exposed to Bitcoin via their index funds, ETFs and other trackers.
Enough to raise awareness, or even massive adoption, of the crypto queen among the general public. The impact would therefore be potentially resounding.
MicroStrategy’s entry into the S&P 500 has not yet been confirmed. But it would be a tremendous boost to the adoption of Bitcoin among the general public. Proof that crypto continues to seduce the traditional financial sphere, patiently but surely. This issue will need to be monitored closely in the coming months. The story accelerates.
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