Bitcoin News Today: Block Stock Surges 9% After S&P 500 Inclusion

Block, Inc., the financial services company founded by Jack Dorsey, experienced a significant surge in its stock price, rising almost 9% in after-hours trading on Friday. This surge followed the announcement that Block would be added to the S&P 500, the benchmark index of the 500 largest U.S. companies by market capitalization. The company will replace Hess Corp on the index before trading commences on Wednesday.

The news triggered a strong reaction from the Bitcoin community, given Block's advocacy for Bitcoin and its strategy of holding the cryptocurrency as part of its treasury. According to the most recent data, Block holds 8,584 Bitcoin. Crypto commentary accounts highlighted the significance of this move, with one account stating, “This is not just a headline. It is trillions in passive flows inching closer to Bitcoin.” Another account noted, “Crypto roots + Fintech firepower = Wall Street’s new blueprint.”

To be listed on the S&P 500, a firm must meet several criteria, including having a market cap greater than $18 billion, a public float of greater than 10%, and positive earnings for the most recent quarter. The sum of the previous four quarters’ GAAP (Generally Accepted Accounting Principles) earnings should also be positive. Block’s entry into the S&P 500 came only two months after crypto exchange Coinbase Global became the first crypto firm to make it into the S&P 500 index.

Speculation is rife that more crypto-related firms may be added to the index in the future. On Wednesday, after Michael Saylor’s Strategy broke its all-time high market capitalization, Strive Funds Bitcoin Strategy vice president Jeff Walton said it is the 11th day of Strategy qualifying for the S&P 500. Block’s move onto the S&P 500 had been anticipated for some time. On Jan. 10, Matthew Sigel, head of digital assets research at VanEck, suggested that Block could become the first company with an “explicit” Bitcoin strategy to be included in the S&P 500.

Block’s inclusion in the S&P 500 is a significant milestone that reflects the company's growth and stability. The move is expected to enhance Block's market standing and attract more investors, further solidifying its position in the financial technology sector. The surge in Block's stock price during after-hours trading underscores investor optimism about the company's future prospects and its ability to continue growing and innovating in the payment and financial services industry.

Block's entry into the S&P 500 aligns with its long-term goals and strategic vision. The company, founded by Jack Dorsey and James McKelvey, has been at the forefront of financial technology innovation. Its key segments, Square and Cash App, cater to different market needs, providing a diverse range of financial services to consumers and businesses alike. This inclusion in the S&P 500 is likely to further bolster Block's reputation and attract more institutional investors.

The announcement of Block's inclusion in the S&P 500 has been met with enthusiasm by the market. The surge in stock price during after-hours trading is a clear indication of the positive sentiment surrounding the company. As Block continues to expand its offerings and reach, its inclusion in the S&P 500 is expected to drive further growth and innovation in the financial technology sector.