Matthew Sigel, Head of Digital Assets Research at VanEck, believes Block Inc. may enter the S&P 500 Index this year. This prediction has attracted the attention of market observers and investors.
This is because being included in the S&P 500 is an important milestone for public companies.
Prospects of Block Inc to Enter the S&P 500
The S&P 500 is a well-known index that includes 500 of the largest publicly traded companies in the United States.
Notably, important criteria must be met before the S&P 500 inclusion. First, the company’s market capitalization value must be over $18 billion.
Also, at least 10% of the company’s shares must be available for the public to trade. This is known as a public float.
Notably, earnings are crucial as well. The company must show positive earnings for the most recent quarter and the preceding four quarters.
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These earnings are estimated based on the Generally Accepted Accounting Principles (GAAP). Furthermore, the company must have high liquidity and be domiciled in the United States.
However, Sigel highlighted that getting included in the S&P 500 isn’t just a straightforward process.
The S&P 500 Index Committee also uses its judgment and considers factors beyond financial numbers. One important factor considered is sector diversity.
The committee wants to ensure that the sectors represented in the index reflect the overall U.S. economy.
Sigel believes that Block will continue to grow and can meet the standards needed to join the S&P 500.
If Block gets included, it would mark an important achievement for the company. It will also show that tradfi firms with a blockchain focus can succeed.
Although the final decision is up to the Index Committee, Sigel said Block’s current progress indicates it may be ready for inclusion this year.
Typically, companies that have fulfilled all the necessary criteria have been added within 3 to 21 months.
Block’s Early Bitcoin Adoption
Recall that Block (formerly Square) invested $5 million in a solar-powered Bitcoin (BTC) mining facility for Blockstream Mining in 2021.
The company announced it is committed to driving further adoption and efficiency of renewables within the Bitcoin ecosystem. Since that time, Block has spearheaded different Bitcoin tech innovations
Block CEO Jack Dorsey is one of the strongest supporters of Bitcoin. He believes BTC will become the world’s single currency within 10 years.
As part of his BTC advocacy, Dorsey believes one does not need a bank account when there are crypto assets.
MicroStrategy and Nasdaq-100 Entry
The VanEck forecast for Block mirrors related milestone business intelligence and software firm MicroStrategy scored last year. As reported earlier by The Coin Republic, MicroStrategy joined the Nasdaq-100 index on December 23, 2024.
As the largest corporate shareholder in Bitcoin, it has adjusted its retained earnings to reflect Bitcoin price gains.
From now on, Bitcoin price movements might impact its earnings. This correlation will offer investors a clearer view of the company’s profitability as a leveraged Bitcoin buyer.
By adhering to index listing standards well, MicroStrategy could improve its chances of being included in the S&P 500 index as well.
With Bitcoin gains reflecting during the 4 quarters of 2025, the path to eligibility seems more attainable.
Source: https://www.thecoinrepublic.com/2025/01/10/vanecks-matthew-sigel-tips-block-inc-to-enter-sp-500-this-year/