Michael Saylor Leads Strategy Toward S&P 500 Inclusion with Bitcoin Gains

Strategy, previously known as MicroStrategy, is on the cusp of a historic milestone, potentially joining the S&P 500 Index following an exceptional second quarter in 2025. Led by Michael Saylor, the company has transformed its financial profile through a bold Bitcoin treasury strategy, capitalizing on new accounting standards and a surging crypto market.

With a rebalancing decision looming this Friday and implementation set for September 19, Strategy’s inclusion could mark a pivotal moment for both the company and Bitcoin’s integration into mainstream finance. However, uncertainties remain as the S&P 500 committee weighs discretionary factors that could impact the final decision.

Record Financial Performance and Bitcoin’s Role

In Q2 2025, Strategy reported revenue of $114.5 million, reflecting a modest 2.7% year-over-year increase. The real standout, however, was the company’s $14 billion in operating income and $10 billion in net income, driven largely by unrealized gains on its substantial Bitcoin holdings. A key factor in this turnaround was the adoption of fair-value accounting standards under the Financial Accounting Standards Board’s revised rules, which allowed Strategy to recognize Bitcoin price appreciation directly in its financials. With Bitcoin trading above $100,000 during the quarter, the company reversed years of impairment losses, showcasing the transformative impact of its crypto-focused strategy.

These results have positioned Strategy to meet all S&P 500 eligibility criteria, including a robust total market value, high liquidity, and a public float exceeding 50%. The final hurdle—consistent profitability under Generally Accepted Accounting Principles (GAAP)—was cleared thanks to Bitcoin’s price surge and the accounting rule change. As of June 30, Strategy held 597,325 Bitcoin, representing a significant portion of its asset base and reinforcing its identity as a Bitcoin proxy in the eyes of investors. This financial milestone has set the stage for the company’s potential inclusion in the prestigious index.

The prospect of Strategy joining the S&P 500 has sparked excitement in financial markets, with analysts estimating that inclusion could trigger $7.7 billion in inflows from index funds and exchange-traded funds (ETFs). Such inflows would represent 8.5% of Strategy’s float-adjusted market value, potentially driving significant share price appreciation. Historical precedents, such as Tesla’s 60% stock surge following its 2020 S&P 500 inclusion announcement, highlight the transformative impact of index membership. Similarly, Coinbase’s addition to the S&P 500 in May 2025 led to a notable stock rally, offering a crypto-related parallel to Strategy’s potential trajectory.

Despite meeting all eligibility criteria, Strategy’s inclusion is not guaranteed. The S&P 500 committee retains discretion to exclude companies based on factors such as sector composition or market conditions. Analysts caution that concerns about Bitcoin’s volatility or the committee’s desire to maintain sector balance could delay Strategy’s entry. Nevertheless, the company’s strong financial performance and growing institutional acceptance of cryptocurrency make it a compelling candidate for the index.

Strategy’s potential inclusion carries broader significance for the crypto market. As the first Bitcoin treasury firm to qualify for the S&P 500, Strategy could pave the way for greater institutional adoption of digital assets. Index funds tracking the S&P 500 would indirectly gain exposure to Bitcoin through Strategy’s holdings, potentially channeling billions into the crypto ecosystem. This development aligns with recent trends, including the approval of spot Bitcoin ETFs and increasing corporate adoption of Bitcoin as a reserve asset. However, analysts note that Bitcoin’s price volatility remains a risk, as a sharp decline could impact Strategy’s earnings and future index eligibility.