Strategy Now Meets All S&P 500 Requirements After a $14 Billion Unrealized Gain in 2025

• How Did Strategy Suddenly Qualify for the S&P 500?
• What Makes Strategy Stand Out Among 2025’s Rebalance Candidates?
• Why Volatility Could Still Derail Strategy’s S&P Dreams
• The $10 Trillion Question: Will the S&P Committee Say Yes?
• What Institutional Investors Need to Know About the Potential Inclusion
• How Michael Saylor’s Controversial Bet Might Finally Pay Off
• What History Tells Us About Crypto Companies in Major Indices
• The Bottom Line for Crypto Investors
• Frequently Asked Questions

In a stunning turn of events, Strategy has cleared all S&P 500 eligibility hurdles following a $14 billion unrealized gain last quarter. This positions the company—once an enterprise software firm, now a corporate bitcoin vault—for potential inclusion in the index. If approved, passive funds could be forced to buy nearly 50 million shares, worth $16 billion at current prices, effectively turning pension funds and institutional investors into indirect Bitcoin holders overnight. While volatility and sector balance concerns linger, the math now undeniably supports CEO Michael Saylor’s controversial “all-in” crypto strategy. Here’s why this development could reshape institutional crypto exposure.

How Did Strategy Suddenly Qualify for the S&P 500?

Strategy’s path to S&P 500 eligibility reads like a Wall Street thriller. The company posted an unrealized $14 billion gain last quarter—the final piece needed to satisfy the index’s profitability requirements. This comes after its radical transformation from a traditional software business to what analysts now call a “Bitcoin holding company with a software side hustle.” According to TradingView data, the firm’s market cap has ballooned to $90 billion, well above the S&P’s $22.7 billion minimum threshold.

What Makes Strategy Stand Out Among 2025’s Rebalance Candidates?

Out of 26 companies analyzed by Stephens Inc. this quarter—including Robinhood, AppLovin, and Carvana—Strategy emerged as the liquidity leader. Its float-adjusted liquidity ratio surpassed all peers, a critical factor for inclusion. “The S&P cares about representing leading companies,” explained Melissa Roberts, Stephens’ head of index research. “When a player dominates its space, ignoring them becomes difficult.” That “space” now undeniably includes crypto, as evidenced by the S&P’s recent additions of Coinbase and Block.

Why Volatility Could Still Derail Strategy’s S&P Dreams

Here’s where things get messy. Strategy’s 30-day price volatility hit 96%—higher than Nvidia (77%) and Tesla (74%) during their most turbulent periods. The S&P committee prioritizes index stability, and such wild swings historically give them pause. Remember Robinhood’s June 2024 saga? The stock soared on S&P rumors, then crashed when the invitation never came. Strategy faces similar skepticism, compounded by its failed preferred stock offering last month, which forced a dilutive common stock issuance that angered shareholders.

The $10 Trillion Question: Will the S&P Committee Say Yes?

Edward Yoon of Macquarie Capital notes Strategy’s $90 billion market cap makes it a heavyweight contender. However, he cautions: “Meeting eligibility doesn’t guarantee inclusion. The committee considers sector balance, and tech already dominates the index.” This creates a Catch-22—Strategy qualifies by every published rule, but its addition could exacerbate the S&P’s tech concentration. Meanwhile, Antti Petajisto’s research on the “index effect” suggests new entrants typically rally post-inclusion, though front-running by traders has dampened this boost in recent years.

What Institutional Investors Need to Know About the Potential Inclusion

Should Strategy join the S&P 500, approximately $10 trillion in passive funds WOULD need to adjust holdings. BTCC analysts estimate this could trigger demand for 50 million shares—equivalent to about 10 days’ trading volume at current levels. For context, when Tesla entered the index in 2020, it sparked a 700% annual rally. While such extreme moves seem unlikely today, the structural demand shock could provide lasting support for Strategy’s shares.

How Michael Saylor’s Controversial Bet Might Finally Pay Off

Saylor’s all-in Bitcoin strategy—once mocked as reckless—now appears prescient. By funneling debt and equity raises into crypto (the company holds over 200,000 BTC), he’s positioned Strategy as a Leveraged Bitcoin play with institutional packaging. The potential S&P inclusion validates this unconventional approach, though recent financing struggles show the model isn’t without risks. As of September 2025, Strategy shares trade at a 12% premium to its Bitcoin holdings, down from 30% earlier this year.

What History Tells Us About Crypto Companies in Major Indices

Coinbase’s 2023 S&P 500 inclusion set a precedent, but Strategy represents a different beast—a company that essentially morphed into a Bitcoin ETF before ETFs existed. The Nasdaq 100 added Strategy in December 2024, but the S&P carries greater weight, tracking nearly double the assets. Interestingly, Saylor predicted back in 2024 that 2025 would be Strategy’s breakthrough year. With all boxes now checked, the question shifts from “if” to “when.”

The Bottom Line for Crypto Investors

This isn’t just about Strategy—it’s about institutional acceptance of crypto as an asset class. An S&P inclusion would mark the first time pension funds and conservative institutions gain passive Bitcoin exposure. While the committee’s decision remains uncertain (announcements typically come quarterly), the mathematical case has never been stronger. As always in crypto, buckle up—this ride promises volatility either way.

Frequently Asked Questions

What are the main requirements for S&P 500 inclusion?

Companies must be U.S.-based, have a market cap above $22.7 billion, demonstrate sufficient liquidity, and show positive earnings in both the most recent quarter and trailing four quarters.

How much Bitcoin does Strategy currently hold?

As of Q2 2025 filings, Strategy holds approximately 210,000 BTC, worth roughly $14 billion at current prices according to CoinMarketCap data.

When will the S&P 500 announce its next rebalance?

The committee typically announces changes quarterly, with the next decision expected by late September 2025 based on historical patterns.