Strategy Could Be Eligible for S&P 500 Inclusion in June if Bitcoin Closes Q1 Above $96K

Strategy Could Be Eligible for S&P 500 Inclusion in June if Bitcoin Closes Q1 Above $96K

MicroStrategy Nears S&P 500 Inclusion as Bitcoin Price Becomes Critical Factor

MicroStrategy (MSTR) is on the cusp of joining the S&P 500, with one final hurdle remaining: achieving a positive GAAP net income over the past 12 months. The key determinant? Bitcoin's (BTC) closing price at the end of Q1 2025.

Currently, MicroStrategy meets all eligibility requirements except for the net income criterion. The Financial Accounting Standards Board (FASB) recently updated digital asset accounting rules, allowing companies to report Bitcoin holdings at fair market value rather than their lowest recorded price. This change means Bitcoin’s price movements will directly impact MicroStrategy’s bottom line.

According to financial analyst Richard Hass, for MicroStrategy to achieve a positive trailing 12-month net income, Bitcoin must close Q1 2025 above $96,337—its average purchase price during the quarter. If BTC falls below this threshold, MicroStrategy may book losses, delaying its S&P 500 inclusion.

Despite past impairment losses due to outdated accounting rules, MicroStrategy’s Bitcoin holdings have significantly contributed to its market valuation. The company currently owns 478,740 BTC, making it the largest corporate holder of the cryptocurrency.

Benchmark analyst Mark Palmer emphasized that MicroStrategy’s adoption of the FASB accounting updates strengthens its case for S&P 500 inclusion, noting:
"Given MSTR’s outperformance of every current index constituent over four years, exclusion would be surprising."

If MicroStrategy qualifies, its inclusion in the S&P 500 would have major implications for institutional investors, as all S&P 500 index funds would be required to hold MSTR shares, indirectly exposing them to Bitcoin.

As the March 31 deadline approaches, all eyes are on Bitcoin’s price movement, which could determine whether MicroStrategy makes history as the first Bitcoin-centric company to join the prestigious index.