MicroStrategy (MSTR) Stock Charted 2-Year High This Week, Is Bitcoin to 'Blame'?

MicroStrategy’s stock prices soared this week and tapped a multi-year peak of over $800 before going down to $700.

This led to numerous speculations and analyses on whether MSTR has the chance to enter the most well-known and attractive US stock market index – the S&P 500, and if that would impact Bitcoin in any way, given MicroStrategy’s pro-BTC strategy.

MSTR’s Volatile Week

Co-founded by Bitcoin bull Michael Saylor, the NASDAQ-listed business intelligence software giant is the largest corporate holder of the primary cryptocurrency, currently in possession of 190,000 BTC. The firm stands on a massive unrealized profit of $4 billion following the latest price increase of BTC.

Given its considerable exposure to the largest cryptocurrency (currently holding $10 billion worth of Bitcoin), MicroStrategy’s stock prices have largely been impacted by BTC’s movements. This has been particularly evident in the past month or so. When BTC was sluggish at around $43,000 ten days ago, MSTR’s price had declined to under $500.

However, once Bitcoin started its ascend, in which it gained ten grand in just over a week, MSTR followed suit and went above $800 for the first time since November 2021 (coincidently, or not, when BTC painted its ATH of $69,000).

However, the cryptocurrency failed to breach the $53,000 line and has retraced by a grand. In an even more painful decline, MSTR dropped by 13% since its local peak to close on Friday at $700.

MicroStrategy to Enter the S&P 500?

Following its substantial increase in the past few weeks, MicroStrategy’s total market cap exceeded $12 trillion at one point, and the company neared the top 500 largest US firms by that metric.

This led to speculations about whether the largest corporate holder of BTC could enter the most prominent US stock market index – the S&P 500. However, there are certain criteria that the firm has to meet in order to find a place within the index that tracks the performance of the largest 500 companies traded on US stock exchanges.

Its market cap has to be over $15.8 billion, meaning that its stock price needs to climb above $940. 250,000 shares or more have to be traded in the past half a year. The majority of which have to be owned by the public.

MicroStrategy meets some of the criteria so far, including posting a positive sum of profits over its last four quarters, including the most recent one.

Nevertheless, even if it meets all requirements, the S&P has an 11-member executive committee that has to approve its potential listing. Given its exposure to BTC and the controversial views of Wall Street on the cryptocurrency industry, this could prove to be a rather challenging endeavor.