ordinary1985
05-30

$Strategy(MSTR)$  Could MicroStrategy (MSTR) Stock Soar if It Joins the S&P 500?

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!

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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