$Strategy(MSTR)$
MicroStrategy (MSTR), a company known for buying billions in Bitcoin, has a stock price that some believe is being held back. But what if it gets added to the S&P 500, a key index of the 500 biggest U.S. companies? Here's a simple take on why the stock might rocket if that happens.
Why Could MSTR Join the S&P 500?
To get into the S&P 500, a company needs:
A market value of at least $18 billion.
Strong trading volume and public shares.
Profits in the latest quarter and over the past year.
A solid U.S.-based reputation.
MSTR's value jumps with Bitcoin's price, now over $104,000 (as of May 30, 2025). New accounting rules let MSTR report Bitcoin gains, possibly showing profits. But its Bitcoin focus and a recent lawsuit about misleading claims might make the S&P 500 committee hesitant.
Why Would the Stock Surge?
If MSTR joins the S&P 500, here's what could happen:
Big Buyers Jump In
Index funds and ETFs tracking the S&P 500 would buy MSTR shares, pouring in billions and pushing the price up fast.
More Trust
Being in the S&P 500 looks good, convincing skeptical investors and maybe squeezing out those betting against MSTR.
Bitcoin Boost
A higher MSTR price could let the company buy more Bitcoin, and rising Bitcoin prices could lift MSTR even more.
Past Examples
When companies like Coinbase joined the S&P 500, their stocks jumped—Coinbase soared 24% in a day in May 2025. MSTR could see a big leap too.
The Bottom Line
MSTR's price might be low now due to doubts, Bitcoin swings, or legal issues. But if it joins the S&P 500, massive buying, renewed confidence, and its Bitcoin link could send the stock skyrocketing. It's not guaranteed, but the theory has investors buzzing!
Comments