"KBW Initiates Coverage of Strategy: Bitcoin Play for S&P 500 Eligibility"
Investment bank KBW has initiated coverage of Strategy, formerly known as MicroStrategy, with an "Outperform" rating and a target price of $560. According to a research report released by KBW, the company is expected to adopt the latest FASB accounting standards in the first quarter of 2025, which could potentially make it eligible for inclusion in the S&P 500 index. One of the key inclusion criteria for the index is that the most recent quarter and the past four quarters have a positive net profit.
As a publicly traded company holding the largest amount of Bitcoin reserves, Strategy is poised to earn on-chain revenue through Bitcoin network applications in the future. This strategic move could further enhance the company's financial position and potentially drive its stock price higher, as indicated by KBW's target price.
The initiation of coverage by KBW comes at a time when the cryptocurrency market is experiencing significant growth and innovation. Other recent developments in the industry include DeepSeek's unveiling of the Burst AI bubble, which could have both positive and negative implications for crypto AI, and Virtuals' launch of a partner network that allows X accounts to connect to the AIXBT terminal for additional interaction.
As the market continues to evolve, investors and analysts alike are keeping a close eye on key market insights and trends. The on-chain detective continues to monitor the market, providing valuable insights into the latest developments and helping investors make informed decisions.
