Strategy’s perpetual preferred stocks are catching the eye of investors, potentially in anticipation of the company’s inclusion in the S&P 500. This buzz is fueled by Bitcoin’s recent surge to a record-high monthly close, a milestone that some analysts say could catapult Strategy into the prestigious index. The company, based in Tysons Corner, Virginia, reported a positive earnings impact of $11 billion, which translates to earnings per share of approximately $39.50—enough to clear the final hurdle for S&P 500 eligibility, according to MSTR analyst Jeff Walton.
Rising Tide Lifts Stocks
On Monday, Strategy’s stock saw a 5% uptick, breaking the $400 mark for the first time since May 22. But the real movers were the perpetual preferred shares. STRK led the charge with a remarkable 15% rise, while STRF and STRD followed suit, climbing 7.5% and 3% respectively. These gains are not merely a reflection of potential S&P 500 inclusion; they also underscore the attractive yields these stocks offer. STRK’s yield stands at 6.6%, STRF at 8.8%, and STRD at a hefty 11.1%, all surpassing the Federal Reserve’s target rate of 4.25%-4.5%.
Investors are seemingly drawn to these yields, particularly as President Donald Trump has been vocal about his desire for lower U.S. interest rates. The prospect of high yield in a potentially low-rate environment makes Strategy’s offerings even more alluring. This aligns with broader trends in the crypto market, as seen in our recent coverage of Circle Stock in Up Only Mode Even as Bitcoin, Crypto Market Struggle.
Strategic Moves and Market Implications
Since its launch on February 6, STRK has delivered a 42% return, outperforming Bitcoin’s 11% increase and the S&P 500’s modest 2% rise. These figures exclude any dividend payments, adding another layer of attraction for yield-seeking investors. The spike in Strategy’s stocks raises a pivotal question: Are these moves purely speculative, or do they signal a broader market expectation that Strategy will soon join the S&P 500?
Joining the S&P 500 often leads to a spike in demand, as institutional investors who are bound by mandates can now include the stock in their portfolios. Historically, companies see a boost in their stock price when they join the index, further adding to the intrigue surrounding Strategy’s recent performance. This is reminiscent of past events where Saylor hinted at the next Bitcoin buy amid investor concerns.
Historical Context and Future Outlook
To understand the current excitement, it’s worth considering the historical context. Strategy has long been a significant player in Bitcoin accumulation, making its performance closely tied to the fortunes of the cryptocurrency market. Bitcoin ending June at $107,750 has clearly bolstered Strategy’s financials, aligning with the company’s strategic bet on the digital currency.
Looking ahead, the official announcement regarding S&P 500 inclusion isn’t expected until September. Until then, market participants will likely keep a close eye on both Strategy’s financial performance and Bitcoin’s price movements. Should Strategy secure a spot in the S&P 500, it could pave the way for even more institutional interest, potentially driving further gains in its stock price.
In the meantime, there are unanswered questions about whether the current enthusiasm is sustainable. Can Strategy maintain its momentum if Bitcoin’s price falters? And will the anticipated S&P 500 inclusion materialize, or is it just a speculative bubble waiting to burst?
These uncertainties are part of what makes the cryptocurrency and equity markets so captivating—volatile, unpredictable, yet filled with opportunity. As investors weigh these factors, Strategy’s journey toward potential S&P 500 inclusion will be one to watch closely in the coming months.
Source
This article is based on: Strategy’s Perpetual Preferred Stocks May Be Front Running S&P 500 Inclusion
Further Reading
Deepen your understanding with these related articles:
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- Donald Trump and Bitcoin: From ‘Not a Fan’ to Crypto President—With His Own Meme Coin
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
