Bitcoin News Today: Bitcoin-Backed Strategy Inc. Could Shake Up the S&P 500

Strategy Inc., previously known as MicroStrategy, is drawing attention as a potential candidate for inclusion in the S&P 500 index, a move that would mark a significant shift for the enterprise software company turned Bitcoin treasury. The company's $14 billion unrealized gain in the last quarter has positioned it to meet the profitability and liquidity requirements for index eligibility, according to current S&P standards. This development, once considered improbable, highlights the company's transformation from a conventional software firm to a major player in the crypto space [1].

To qualify for the S&P 500, a company must demonstrate strong liquidity, profitability, and a trading history of at least four consecutive quarters. Strategy has not only met these criteria but also outperformed many of its peers in terms of liquidity metrics. According to an analysis by Stephens Inc., the firm has the highest float-adjusted liquidity ratio among the 26 potential candidates for the index's quarterly rebalancing. This liquidity advantage means that Strategy's shares trade more actively and efficiently relative to its market capitalization [1].

The implications of Strategy's potential inclusion in the S&P 500 are far-reaching. If approved, passive funds tracking the index would be obligated to purchase approximately 50 million shares, valued at around $16 billion at current prices. For Michael Saylor, who has been instrumental in transforming Strategy into a Bitcoin treasury, this would represent institutional validation of a strategy once criticized as risky. The move could also indirectly introduce crypto exposure to pension funds and other institutional investors through the index, further embedding digital assets into mainstream financial portfolios [1].

The S&P 500 has already made strides in incorporating digital assets, as seen with the inclusion of Coinbase Global Inc. and Block Inc. The decision to add these firms signaled the committee's recognition of the growing influence of the cryptocurrency sector. Melissa Roberts of Stephens noted that this inclusion reflects the index's aim to represent leading companies across all industries, stating that “if someone is a big player in the space, it’s hard to ignore them” [1].

While Strategy's inclusion remains pending, the company has demonstrated a consistent and strategic approach to its Bitcoin accumulation. Using equity and preferred stock offerings, as well as convertible debt, Strategy has built a treasury of approximately 629,000 Bitcoin, representing nearly 64% of all public-company treasury holdings. This model, which relies on cost-averaging and a steady accumulation policy, has allowed the company to maintain transparency and market confidence despite volatile price swings [2].

The company's commitment to its Bitcoin strategy is further underscored by its recent purchase of over 585 Bitcoin for $69 million in August 2025 alone. This activity reflects a broader trend of institutional adoption and normalization of Bitcoin as a reserve asset. While the market remains cautious due to the company's aggressive financing strategies, Strategy's approach continues to influence corporate treasury practices, particularly among tech firms exploring alternative assets to hedge against inflation [2].

The broader crypto market has also seen significant activity in August 2025, with Ethereum experiencing a notable surge in inflows and volatility. According to the VanEck Crypto Monthly Recap for August 2025, Ethereum ETPs received $4 billion in inflows, outpacing Bitcoin's outflows of $600 million. This trend contributed to Ethereum's dominance ratio rising to 0.043, the highest since September 2024. The growth in Ethereum treasury strategies, including acquisitions by firms like Bitmine Immersion Technologies and Sharplink Gaming, further illustrates the shift toward crypto-backed reserves [3].

As the crypto market continues to evolve, the interplay between Bitcoin and Ethereum strategies is shaping corporate and institutional adoption. While Michael Saylor's direct accumulation of Bitcoin has set a precedent for corporate treasuries, Peter Thiel's indirect approach through Ethereum-backed companies highlights alternative models for leveraging crypto assets. Both strategies underscore the growing recognition of digital assets as strategic reserves, albeit with distinct risk and reward profiles [2].

Source:

[1] title1 (https://finance.yahoo.com/news/bitcoin-faithful-bet-saylor-strategy-143009749.html)

[2] title2 (https://cointelegraph.com/explained/peter-thiel-vs-michael-saylor-whos-making-the-smarter-crypto-treasury-bet)

[3] title4 (https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-crypto-monthly-recap-for-august-2025/)