MicroStrategy stands at the threshold of a historic milestone—potential inclusion in the S&P 500 index. With just one final hurdle to clear, all eyes are on June 30, 2025, as the company’s fate hinges not only on its financial performance but also on the price of Bitcoin.
Holding an impressive 592,345 BTC—valued at over $63.7 billion—MicroStrategy is uniquely positioned to report one of its most profitable quarters ever. But there’s a catch: Bitcoin must remain above **$95,240** by quarter-end to turn unrealized gains into positive earnings. Thanks to a recent shift in accounting standards, those gains can now count toward profitability, opening the door to S&P 500 eligibility.
The Final Barrier: Profitability
To qualify for the S&P 500, companies must meet several key criteria:
- Be headquartered in the United States
- Have a substantial market capitalization
- Maintain sufficient public float and trading volume
- Report positive net income over the past four consecutive quarters
MicroStrategy satisfies the first three conditions with ease. Its U.S. base, massive Bitcoin-backed valuation, and strong trading liquidity make it a natural fit. However, until recently, negative earnings have been a persistent roadblock.
Under prior accounting rules, MicroStrategy was required to recognize unrealized losses on its Bitcoin holdings—even if it never sold a single coin. During market downturns, these paper losses dragged down quarterly profits, preventing the company from meeting the S&P’s profitability requirement.
As noted by Bitcoin advocate Alex on X, this accounting treatment was the primary obstacle blocking MicroStrategy’s path to index inclusion.
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A Game-Changing Accounting Shift
In a pivotal development, updated accounting guidelines now allow public companies to report fair-value gains on digital assets like Bitcoin directly in their income statements. This means that if Bitcoin’s market price exceeds MicroStrategy’s average acquisition cost, the company can record those unrealized gains as part of its quarterly earnings.
This rule change transforms MicroStrategy’s financial outlook. With Bitcoin currently trading at **$107,753**, well above the critical $95,240 threshold, the company is on track for a strong positive earnings report in Q2 2025.
Analyst Jeff Walton highlights that surpassing this price level would not only erase past losses but also generate substantial net income—potentially enough to satisfy the S&P 500’s four-quarter profitability rule.
Current data shows:
- Bitcoin price (as of June 2025): $107,753
- Q2 BTC performance: +29.2%
- Probability of BTC staying above $95,240: 91%
These figures suggest a high likelihood that MicroStrategy will meet the final criterion for S&P 500 inclusion.
What Happens If MicroStrategy Gets Added?
If MicroStrategy is officially added to the S&P 500 index, the implications extend far beyond one company’s stock performance.
Index funds and ETFs that track the S&P 500—such as the SPDR S&P 500 ETF (SPY) and Vanguard’s VOO—are required to include all constituent stocks in proportion to their market cap. That means billions of dollars in passive investments would automatically flow into MSTR shares.
This creates a powerful ripple effect:
- Institutional investors gain indirect exposure to Bitcoin through a regulated, publicly traded vehicle.
- Mainstream financial markets absorb a company whose value is deeply tied to cryptocurrency.
- Bitcoin gains legitimacy as a strategic corporate asset rather than just a speculative digital commodity.
In essence, MicroStrategy could become a backdoor gateway for traditional finance to invest in Bitcoin without directly holding crypto.
Why This Matters for Bitcoin Investors
For those following the broader adoption of digital assets, MicroStrategy’s potential inclusion is more than a stock market event—it’s a cultural and financial inflection point.
Here’s why Bitcoin investors should pay close attention:
- Accelerated institutional adoption: When major funds buy MSTR, they’re betting on Bitcoin’s long-term value.
- Increased demand for crypto-linked equities: Stocks like MSTR, Coinbase (COIN), and others may see rising interest as proxies for crypto exposure.
- Normalization in traditional finance: Seeing a Bitcoin-heavy firm in the S&P 500 signals that digital assets are no longer fringe—they’re foundational.
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Frequently Asked Questions
What has prevented MicroStrategy from joining the S&P 500 so far?
The primary barrier has been negative net income caused by accounting rules that required MicroStrategy to record unrealized Bitcoin losses, even when no coins were sold.
How does the new accounting rule help MicroStrategy?
The updated standard allows companies to include fair-value gains on Bitcoin in their quarterly earnings. If Bitcoin's price remains high, these gains can turn MicroStrategy’s reported profits positive.
What price does Bitcoin need to stay above for MicroStrategy to qualify?
Bitcoin must remain above $95,240 by June 30, 2025. This level ensures sufficient unrealized gains to offset previous losses and achieve four consecutive quarters of profitability.
What happens if MicroStrategy is added to the S&P 500?
Index-tracking funds will be required to purchase MSTR shares, injecting significant capital into the stock and giving traditional investors indirect exposure to Bitcoin through regulated markets.
Could this boost Bitcoin’s price?
Indirectly, yes. Increased demand for MSTR could drive more attention and investment into Bitcoin as an asset class, reinforcing its credibility and potentially increasing adoption.
Is there any risk MicroStrategy might still miss inclusion?
Yes—mainly if Bitcoin drops sharply below $95,240 before June 30. A sustained dip could result in insufficient earnings, delaying eligibility to a future quarter.
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The Road Ahead
As June 30 approaches, the convergence of corporate finance and cryptocurrency reaches a defining moment. MicroStrategy’s journey reflects a broader shift: digital assets are no longer operating on the fringes of finance—they’re moving into its core.
Whether or not MicroStrategy officially joins the S&P 500, its influence is already being felt. It has redefined what it means for a public company to hold Bitcoin, challenged outdated accounting norms, and paved the way for future crypto-integrated firms.
For investors, this moment offers both opportunity and insight. Watching Bitcoin’s price isn’t just about tracking volatility—it’s about understanding how deeply interconnected traditional markets have become with the digital asset economy.
And if history turns on this date, June 30 might one day be remembered not just as a quarterly close—but as the day Bitcoin walked into Wall Street through the front door.
Core Keywords: MicroStrategy, S&P 500, Bitcoin price, accounting rule change, profitability, institutional adoption, crypto in traditional finance