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 Dorsey is an American entrepreneur, business executive, and advocate of Bitcoin. He is a co-founder of Twitter (now X) and Block (previously Square). He is one of the early investors in Bitcoin.   Quick Facts   Full name Jack Patrick Dorsey Birth 19-11-1976, St. Louis, Missouri, United States Nationality American Education Missouri University of Science and Technology Marital status Unmarried as of March 2025. Net worth $3.6 billion (refer for realtime)   With Block, he supports startups, built on Bitcoin and open-source blockchain initiatives. Dorsey has supported the development of Bitcoin, progress in the Lightning Network, and Web5, a project focused on launching a decentralized internet.   Jack Dorsey -Career Highlights   2006 – Co-founded Twitter, revolutionizing social media. 2009 – Launched Square (now Block) for digital payments. 2018 – Integrated Bitcoin payments into Cash App. 2021 – Left Twitter to focus on Bitcoin & DeFi. 2022 – Announced Web5, a decentralized internet project. 2023 – Invested in Bitcoin mining and Lightning Network. 2024 – Expanded Block’s Bitcoin-driven financial ecosystem.   By integrating Bitcoin into financial platforms and social media, he continues to shape the future of decentralized finance (DeFi).   His vision is to enhance financial independence using blockchain technology and users must have complete control of their financial data without depending on financial institutions.   Useful Links to Connect With Jack Dorsey   Platform Link X (formerly Twitter) twitter.com/jack LinkedIn NA Web5 Project details on Github https://github.com/TBD54566975 Bitcoin Dev https://spiral.xyz/     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.”