Matthew Sigel Predicts Block Could Join S&P 500, Not MicroStrategy

Matthew Sigel, head of digital assets research at prominent investment firm VanEck VanEck - Cryptocurrency investment in a latest X post has shared that Block (formerly Square) could become the First Bitcoin Hodler in the S&P 500.

The Requirements

He noted that in order to be added into the index, a stock must meet six criteria:

• market cap over $18B,
• the portion of shares held by public investors should be above 10%,
• positive earnings in the most recent quarter and the sum of the previous four quarters GAAP earnings should also be positive,
• high liquidity,
• an IPO seasoning of more than 12 months, and
• US domicile.

He highlighted that Block met the earnings criteria after its 1Q24 earnings report. However, he also shared that the S&P 500 inclusion is not automatic and depends on the Index Committee’s discretion. Historically, companies that meet all requirements are included within 3 to 21 months, with LULU being an exception at 65 months.

He also noted that Sector diversification is a key factor for the Index Committee, aiming to align the S&P 500’s sector composition with the broader economy. Notably, Block initially bought $50 million in Bitcoin in October 2020 and an additional $170 million in February 2021. CEO jack dorsey jack dorsey Jack Patrick Dorsey, is an American technology entrepreneur and philanthropist who is the co-founder and former CEO of Twitter, as well as the SEO of Block, Inc., a monetary installment company. Along with co-founder Jim McKelvey, developed a small business platform to accept debit and credit card payments on mobile devices called Square, which was released in May 2010.He was considered by Forbes the world’s most eligible bachelor. he was ranked by Fox Business as the #4 worst CEO of 2016. In 2022 he will keep his position as Twitter CEO until June, and afterward, he will pass on the organization to zero in on Bitcoin and Block Inc.He accepts that it is in the same place as an open and decentralized financial framework more expected to enable local people against dictator systems and shut markets.jack's networth is 410 crores USD (2024) EntrepreneurDeveloper/ProgrammerChief Executive Officer is a long-time supporter of Bitcoin.

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MSTR, COIN Unlikely?

MicroStrategy (MSTR), a leading corporate Bitcoin holder, was recently added to the Nasdaq-100 but is unlikely to join the S&P 500 soon, despite strong performance in 2024. Eric Balchunas from Bloomberg suggested the S&P 500 inclusion committee might block MSTR even if it qualifies. Bitwise predicted Coinbase could join the S&P 500 this year.

One of Sigel’s followers questioned him about Coinbase’s integration in the index, claiming it also meets all six criteria. Although the crypto firm meets the requirements, the head of digital assets research at VanEck named it a “controversial pick” given its “pure-play crypto exposure.”