Block Enters S&P 500 Index Amid Bitcoin Holdings

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Jack Dorsey’s technology company Block has joined the S&P 500 (S&P 500) index, becoming the third publicly traded entity with significant Bitcoin holdings to be included in the benchmark index.

According to data from BitcoinTreasuries.NET, Block holds approximately 8,584 BTC, valued at roughly $8.5 billion. This positions Block as the 13th-largest corporate holder of Bitcoin.

Share prices on the NYSE have surged nearly 14% in the five days following the announcement.

Criteria for Entry

The S&P 500 consists of the 500 largest publicly traded U.S. companies. Block satisfied the listing criteria: a market capitalization exceeding $18 billion, a public float of more than 10%, and a positive quarterly net income.

S&P 500 inclusions lead to more BTC exposure

The index accounts for approximately $50 trillion in market capitalization. Listing in the S&P 500 provides institutional investors with access to diverse industries, including now, Bitcoin, primarily through S&P-tracking funds.

Analysts suggest this move signifies growing institutional confidence in Bitcoin’s role as a financial asset. “Institutional entrance solidifies BTC’s financial visibility. Expect more conservative entities to consider BTC as a viable treasury asset,” a market participant noted.

The addition has coincided with an increase in Block’s share price.

Coinbase, Tesla stock performances

Other S&P 500 companies holding significant Bitcoin are Coinbase and Tesla.

Coinbase holds 9,267 BTC, estimated at $1.1 billion. Tesla holds 11,509 BTC, worth approximately $1.4 billion.

Market Performance Consequences

Share prices reacted differently to the news. Coinbase’s stock saw a significant increase, rising over 28% in the last month, outpacing the crypto market’s 23% gain. Tesla’s stock, however, dropped about 4.6% in the past month, a move potentially unrelated to its Bitcoin holdings given other factors influencing its operations.

Criteria of S&P 500 Inclusion

To be included in the S&P 500, a company must meet:

A market cap exceeding $18 billion
A public float of more than 10%
A positive net income for the most recent quarter

Significance

Each S&P 500 inclusion of a crypto-related company deepens Bitcoin’s integration into traditional finance and institutional portfolios.

The inclusion signals an evolving relationship between Wall Street and cryptocurrency, highlighting Bitcoin’s growing role as an accepted asset class.