Michael Saylor’s Strategy (MSTR) reportedly meets all the criteria to join the S&P 500 Index, according to a Bloomberg report. Bloomberg writes that of the 26 possible candidates listed by Stephens for this round of quarterly rebalance — including Robinhood Markets Inc. and Carvana — Saylor’s firm has the highest float-adjusted liquidity ratio. Michael Saylor’s Strategy (MSTR) has seen plenty of success in the past year, with its stock up 161% in that span. Riding the Bitcoin wave, the firm formerly known as MicroStrategy could be due up for inclusion in the index.
For context, a company is eligble to join the S&P 500 under the following circumstances:
- Based in the U.S.
- At least 12 months of trading history on a major U.S. exchange
- Market cap above $22.7 billion
- Minimum 50% of shares should be public
- Monthly trading volume of more than 250,000 shares for six months
- The latest quarter has positive earnings
- The last four quarters’ total earnings are positive
Per Bloomberg, Strategy fulfills all of these requirements and could be a leading contender to join the index soon. However, its inclusion is not guaranteed. “It’s important to note that meeting the eligibility requirements does not guarantee inclusion,” said Yoon, managing director and head of US ETF/index trading and strategies. “The S&P committee retains discretion, and predicting its decisions has become increasingly difficult.”
MSTR stock has been one of the best performers on the market, largely due to the surge of Bitcoin (BTC). Strategy’s potential inclusion in the S&P 500 Index would not only mean the world for MSTR, but perhaps Bitcoin as well. Earlier this week, popular Bitcoin investor Lark Davis said that he could see MSTR being eligible to join the index as soon as this week. Davis added that the move will trigger billions in boomer money, i.e., funds from older investors, to flow into MSTR and Bitcoin. Meanwhile, Wall Street veteran Josh Mandell suggests that Strategy has already been included in the S&P 500 and an announcement is imminent.
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At press time, MSTR stock is trading in the middle of its 52-week range and below its 200-day simple moving average. CNN analysts are extremely bullish on Strategy, rating its stock a 10/10 choice. Its one-year stock forecast projects MSTR to hit a potential high of $705, and a median price of $586 during that span, both equaling ROIs of over 70%.
