Matthew Sigel, Head of Digital Assets Research at VanEck, suggests a potential entry for Block Inc into the S&P 500 Index this year, attracting the attention of market observers and investors.
Prospects of Block Inc to Enter the S&P 500
The S&P 500 is a well-known index including the 500 largest publicly traded companies in the U.S. Key criteria for inclusion include a market capitalization exceeding $18 billion and a public float of at least 10%. Companies must also show positive earnings for the most recent and the previous four quarters as per GAAP, have high liquidity, and be domiciled in the U.S. The S&P 500 Index Committee also assesses sector diversity within the index, reflecting the U.S. economy. Sigel believes Block can meet these standards and join the index soon.
Block's Early Blockchain and Bitcoin Adoption
Block (formerly Square) adopted Bitcoin in its processes, investing $5 million in a solar-powered Bitcoin mining facility by Blockstream Mining in 2021. CEO Jack Dorsey actively supports Bitcoin, claiming it will become the world's single currency within ten years.
MicroStrategy and Nasdaq-100 Comparisons
VanEck’s forecast for Block reflects a milestone similar to MicroStrategy's achievement of entering the Nasdaq-100 index in December 2024. This inclusion was facilitated by reflecting Bitcoin price gains in the company's earnings, potentially enhancing the odds of MicroStrategy joining the S&P 500 in the future.
The forecast on Block Inc's S&P 500 inclusion highlights the company's market significance and the potential for blockchain-focused traditional financial firms to succeed, potentially bolstering Block Inc's and similar companies' positions.
