Bitcoin News Today: Block Surges 10.7% After S&P 500 Inclusion Replacing Hess As Third Crypto-Adopting Index Member

Block’s inclusion in the S&P 500 on July 23 marked a significant shift in the index’s composition, replacing Hess Corporation following Chevron’s $54 billion acquisition. The move triggered a 10.7% surge in Block’s stock price, rising from $72.01 on July 18 to $79.69 by press time, as investors and index-tracking funds adjusted portfolios to align with the updated benchmark [1]. Despite this rally, Block’s shares remain 13% lower year-to-date, reflecting broader market dynamics affecting fintech names in 2024.

The company, which announced its S&P 500 addition on July 18, highlighted the milestone as a validation of its business model, emphasizing its diverse offerings across Square, Cash App, Afterpay, and other platforms [1]. Notably, Block joins Tesla and Coinbase as the third publicly traded firm in the index with Bitcoin (BTC) holdings in its treasury. According to Bitcoin Treasuries data, Tesla holds 11,509 BTC (~$1.4 billion), ranking it as the 10th-largest BTC holder among listed companies, while Coinbase controls 9,267 BTC (~$1.1 billion) [1]. Block, with 8,584 BTC valued at $1 billion, now accounts for a 0.09% weighting in the S&P 500, a smaller but growing presence in the index’s crypto-adopting sector.

The inclusion of multiple BTC-holding entities in the S&P 500 underscores a broader institutional trend toward integrating digital assets into corporate treasuries. Tesla’s 9th-largest index weight and Coinbase’s 0.18% weighting illustrate how market perception of risk can evolve with index membership, potentially attracting mandate-limited institutional investors and broadening shareholder bases [1]. However, the long-term sustainability of such re-rating hinges on core business execution. Square’s merchant services, Cash App’s consumer finance tools, and Afterpay’s buy-now-pay-later arm remain critical revenue drivers, while newer initiatives like the Bitkey self-custody wallet and TIDAL music platform contribute to diversification [1].

The event also highlights the interplay between index mechanics and market sentiment. Fintech stocks, including Block, have underperformed relative to tech-led benchmarks this year, but S&P 500 inclusion may reduce perceived risk and enhance liquidity. Analysts note that while index reconstitution provides short-term tailwinds, long-term performance will depend on operational resilience and strategic innovation.

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