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MicroStrategy, the leading corporate holder of Bitcoin, has seen its investment in the cryptocurrency exceed $10 billion, with profits soaring above $4 billion as Bitcoin’s price approached $53,000.&nbsp;
Since commencing its <a href="https://crypto.news/microstrategy-listed-company-bitcoin-reserve-asset/" rel="noopener noreferrer nofollow">Bitcoin acquisition in 2020</a>, MicroStrategy has accumulated 190,000 bitcoins at an average cost of $31,224 per coin, totaling $5.93 billion. This bold move has not only resulted in substantial profits but also positioned the company as a significant influencer in the cryptocurrency domain. The <a href="https://crypto.news/crypto-market-soars-as-sol-rockets-btc-hits-50k-kelexo-lending-surges/" rel="noopener noreferrer nofollow">recent surge in Bitcoin’s price</a>, exceeding 20% since the start of 2024, has doubled MicroStrategy’s profits from nearly $2 billion in December of the previous year to over $4 billion, according to a recent <a href="https://assets.contentstack.io/v3/assets/bltb564490bc5201f31/blt9fe0e76f0b8b3ab0/65c29cdcd6cf0435f215211d/microstrategy-q4-2023-earnings-presentation.pdf" target="_blank" rel="noopener noreferrer nofollow">investor presentation</a>.
The company’s pivot and the ensuing financial success have sparked discussions regarding its <a href="https://twitter.com/IIICapital/status/1758129670929654104?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1758129670929654104%7Ctwgr%5Eece6395b0b68d121b3e1d17e161636b8d98b8a4c%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fmicrostrategy-listing-sp-500-index-exposes-millions-bitcoin" target="_blank" rel="noopener noreferrer nofollow">potential inclusion</a> in the S&amp;P 500 index. Following a remarkable 46% rally in its stock price within an eight-day period up to Feb. 15, MicroStrategy <a href="https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/?page=6" target="_blank" rel="noopener noreferrer nofollow">ranked</a> as the 535th largest publicly listed company in the United States.&nbsp;
To be considered for the <a href="https://crypto.news/bitcoin-btc-copy-the-sp-500-bull-run-analyst-predicts/" rel="noopener noreferrer nofollow">S&amp;P 500</a>, MicroStrategy needs to meet <a href="https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20240102-1469946/1469946_2024janmktcapguidelines.pdf" target="_blank" rel="noopener noreferrer nofollow">several criteria</a>, including a boost in market capitalization. Currently valued at $12.1 billion, the company’s stock price would need to ascend from $718 to $937 to reach the $15.8 billion threshold for index eligibility.
You might also like: <a href="https://crypto.news/1-6b-bitcoin-disappears-from-exchanges-heres-what-it-means-for-btc-price/" rel="noopener noreferrer nofollow"> Bitcoin sees $1.6b disappears from exchanges; here’s what it means for BTC’s price </a>
Beyond market cap, inclusion in the S&amp;P 500 requires satisfying a spectrum of conditions, such as profitability metrics, trading volume, and public shareholding requirements. MicroStrategy has reported a <a href="https://crypto.news/microstrategys-btc-investment-yields-over-300-investor-gain-in-2023/" rel="noopener noreferrer nofollow">positive sum of profits</a> over its last four quarters, aligning it closer to these rigorous standards. However, the ultimate decision for inclusion rests with the S&amp;P’s executive committee, which assesses companies against a comprehensive suite of benchmarks.
Further emphasizing MicroStrategy’s <a href="https://crypto.news/microstrategy-added-850-btc-to-its-balance-sheet-increased-holdings-to-190000-btc/" rel="noopener noreferrer nofollow">commitment</a> to the cryptocurrency sector, CEO Michael Saylor has spearheaded the company’s transition toward becoming a Bitcoin development entity. This strategic evolution marks a profound shift in operational focus, aiming to not only enhance the Bitcoin network but also to maximize the value of its substantial Bitcoin holdings.&nbsp;
Saylor, in <a href="https://www.youtube.com/watch?v=YYzHK-Ft1-g" target="_blank" rel="noopener noreferrer nofollow">recent discussions</a>, pointed to the launch of spot Bitcoin ETFs as a pivotal factor influencing market dynamics, creating a pronounced imbalance between supply and demand. This scenario, he notes, stems from a decade of growing interest in Bitcoin as a viable retail investment option, illustrating MicroStrategy’s intent to lead in the development space within the Bitcoin ecosystem.
Moreover, the company is navigating the potential for further profits with the anticipated <a href="https://news.bloombergtax.com/financial-accounting/microstrategys-bitcoin-bet-on-verge-of-huge-accounting-windfall" target="_blank" rel="noopener noreferrer nofollow">accounting change</a> in 2025, which could value Bitcoin at market prices, potentially adding to MicroStrategy’s profits.
Read more: <a href="https://crypto.news/expert-calls-microstrategy-shares-overvalued-predicts-price-correction/" rel="noopener noreferrer nofollow"> Expert calls MicroStrategy shares overvalued, predicts price correction </a>

MicroStrategy’s bitcoin success sparks speculation on potential S&P 500 entry

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