Matthew Sigel is the head of VanEck’s digital assets research. He believes Block Inc. could be the first S&P-500 listed firm to have an explicit Bitcoin strategy.
Sigel published his report on January 9. He noted that Block met the criteria to be included in the prestigious Index, which tracks 500 of the largest U.S. firms by market capitalization.
For a company to qualify for the S&P 500 list, it must meet six requirements: a total market capitalization of at least $18 billion; a public float greater than 10%; and a positive profit for both the most recent quarter and for the four previous quarters, according to Generally Accepted Accounting Principles.
In addition, the company must have a high level of liquidity, be publicly traded for more than 12 months and be based in the United States.
Block Met Criteria by Q1 2024
Sigel acknowledged that Block met the earnings criteria by the first quarter 2024, but that the Index Committee has the final say on inclusion.
In the past, companies that meet the criteria are included in the index between three and 21 months after meeting them.
Sigel highlighted Block’s unique approach in Bitcoin as compared to other companies.
Sigel said that while Tesla owns Bitcoin, it does not have a strategy as explicit as Block’s.
Block invests 10% of monthly Bitcoin profits on a regular basis to avoid market timing challenges.
Coinbase was also mentioned as a possible candidate for inclusion, but he suggested that it could face difficulties due to its pure crypto exposure.
He pointed out that the financial sector currently accounts for 14% of S&P 500. This indicates there is room for more companies in the industry.
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 announced recently that it would be changing its ticker symbol from “SQ”, “SQ2”, to “XYZ” in 2021, to reflect the rebranding of Block.
The company plans to announce its financial results for the fourth quarter of 2024 on February 20, which could be a crucial moment in its quest to join the S&P 500.
MARA is the Next Bitcoin Firm to Join Nasdaq100
Michael Saylor, founder of MicroStrategy and a prominent Bitcoin advocate, predicted that MARA Holdings would be the next Bitcoin-related company to earn a place in the prestigious Nasdaq100 index.
This was after MicroStrategy became a Nasdaq 100 company on December 23, 2024.
Invesco QQQ (QQQ), a $322 billion ETF, is among the 100 largest companies on Nasdaq based on market capitalization. This gives stock investors indirect exposure to Bitcoin.
