MicroStrategy’s Stock Prices Soar and Drop
MicroStrategy, co-founded by Bitcoin bull Michael Saylor, experienced a volatile week in the stock market. As the largest corporate holder of Bitcoin, with 190,000 BTC in its possession, MicroStrategy’s stock prices have been greatly influenced by the movements of the cryptocurrency. When Bitcoin was stagnant at around $43,000, MicroStrategy’s stock price dropped below $500. However, as Bitcoin started to rise and reached over $53,000, MicroStrategy’s stock price surged to over $800 for the first time since November 2021. Unfortunately, both Bitcoin and MicroStrategy’s stock price retraced after failing to breach the $53,000 line. MicroStrategy closed on Friday at $700, experiencing a 13% decline from its peak.
Speculations on MicroStrategy Entering the S&P 500
With MicroStrategy’s substantial increase in market cap, reaching over $12 trillion at one point, there have been speculations about whether the company could enter the S&P 500. However, certain criteria must be met for a company to be included in this index that tracks the performance of the top 500 US companies traded on stock exchanges. The market cap of MicroStrategy needs to exceed $15.8 billion, which requires its stock price to climb above $940. Additionally, the company must have traded 250,000 shares or more in the past six months, with a majority owned by the public. While MicroStrategy meets some of these criteria and has posted positive profits in recent quarters, gaining approval from the S&P’s executive committee may prove challenging due to its exposure to Bitcoin and Wall Street’s controversial views on cryptocurrencies.
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