From Yahoo Finance: 2025-05-11 11:16:00

Market commentator predicts MicroStrategy’s Q2 earnings could make it eligible for S&P 500, driving interest in MSTR and Bitcoin. Analyst Jeff Walton expects surprises in earnings and market reactions. Strategy reports $5.8 billion gain in Bitcoin, raising yield target to 25% and gain target to $15 billion.

Walton forecasts Bitcoin volatility and prices to surge, with treasury-heavy companies boosting momentum. Strategy’s first-quarter performance reflects explosive growth, with $21 billion stock offering and addition of over 301,000 BTC to reserves. Paper loss at end of Q1 rebounded to potential $8 billion gain for Q2.

Recent accounting rules benefit Strategy, allowing fair market value of Bitcoin to be reflected in earnings. Company’s cash position grows to $60.3 million. MSTR shares up 8.34% in five days, with over 70 public companies holding Bitcoin in treasuries. Bitcoin trading at $104,769, up 1.1% in 24 hours.

For S&P 500 inclusion, companies must meet strict criteria including market cap of $14.5 billion, U.S. listing, positive earnings, and public float. Sector representation and overall market balance also considered. Index committee evaluates factors like governance and stability to ensure credibility as a benchmark for large-cap U.S. equities.

Read more: Analyst unveils MicroStrategy could qualify for S&P 500 soon