Block Inc., a financial services and digital payments company, could become the first S&P 500-listed firm with an explicit Bitcoin strategy, according to Matthew Sigel, VanEck’s head of digital assets research.
Sigel shared his analysis on January 9, noting that Block meets the criteria for inclusion in the prestigious index, which tracks the top 500 U.S. companies by market capitalization.
To qualify for the S&P 500, companies must meet six key requirements: a market cap exceeding $18 billion, a public float of more than 10%, and positive earnings for both the latest quarter and the last four quarters under Generally Accepted Accounting Principles (GAAP).
Additionally, firms must demonstrate high liquidity, have been public for over 12 months, and be U.S.-domiciled.
Block Met Criteria in Q1 2024
Sigel noted that Block satisfied the earnings criteria after the first quarter of 2024 but acknowledged that inclusion is ultimately determined by the Index Committee’s discretion.
Historically, eligible companies are added to the index within three to 21 months of meeting the requirements.
Sigel emphasized Block’s unique approach to Bitcoin compared to other firms.
While Tesla holds Bitcoin, Sigel argued it lacks an explicit strategy like Block’s.
Block dedicates 10% of its monthly Bitcoin gross profits to Bitcoin investment on a recurring basis, avoiding market-timing challenges.
He also mentioned Coinbase as another contender for inclusion but suggested it might face challenges due to its pure-play crypto exposure.
He noted that financial firms currently account for about 14% of the S&P 500, indicating room for additional companies from the sector.
Block, founded by Jack Dorsey in 2009, is the eighth-largest corporate Bitcoin holder, with 8,363 BTC valued at approximately $775 million, according to BitcoinTreasuries.NET.
The company recently announced a change in ticker symbols from “SQ” and “SQ2” to “XYZ,” reflecting its 2021 rebranding to Block.
The firm plans to release its fourth-quarter 2024 financial results on February 20, a key moment that could further bolster its case for inclusion in the S&P 500.
MARA to Become Next Bitcoin Firm to Join Nasdaq 100
Last year, MicroStrategy founder and prominent Bitcoin advocate Michael Saylor tipped crypto miner MARA Holdings as the next Bitcoin-related firm to secure a spot in the prestigious Nasdaq 100 index.
It came after MicroStrategy joined the Nasdaq 100 index on December 23, 2024.
The inclusion placed the company among the top 100 largest firms on the Nasdaq by market capitalization, offering indirect Bitcoin exposure to stock investors, including those holding the Invesco QQQ Trust (QQQ), an ETF managing assets worth $322 billion.
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