Bitcoin’s recent surge to a record monthly close has sparked discussions about Strategy’s (MSTR) potential inclusion in the S&P 500 index. This development has also drawn attention to the company’s perpetual preferred stocks, which have seen notable gains.
Understanding Strategy’s Perpetual Preferred Stocks
Strategy offers several perpetual preferred stocks, including STRK, STRF, and STRD. These stocks provide investors with fixed dividend payments and do not have a maturity date, making them a long-term investment option. The recent performance of these stocks has been impressive:
- STRK: Increased by 15%, reaching $121 with an effective yield of 6.6%.
- STRF: Rose by 7.5%, offering an effective yield of 8.8%.
- STRD: Gained 3%, with an effective yield of 11.1%.
These yields are particularly attractive compared to the Federal Reserve’s target rate of 4.25%-4.5%.
Bitcoin’s Impact on Strategy’s Financials
As of July 1, 2025, Bitcoin is trading at approximately $106,429. This price level has a significant impact on Strategy’s earnings due to the company’s substantial Bitcoin holdings. Analyst Jeff Walton estimates that with Bitcoin at this price, Strategy’s earnings per share could reach around $39.50, potentially qualifying the company for S&P 500 inclusion. (cointelegraph.com)
Potential Inclusion in the S&P 500
Inclusion in the S&P 500 requires a company to meet specific criteria, including positive earnings over the most recent four quarters. With Bitcoin’s current price, Strategy appears to meet these requirements. Analyst Jeff Walton estimates a 91% chance of Strategy qualifying for the S&P 500 in the second quarter, provided Bitcoin remains above $95,240. (cointelegraph.com)
Market Reactions and Investor Sentiment
The anticipation of S&P 500 inclusion has led to increased investor interest in Strategy’s stocks. On Monday, MSTR rose 5%, pushing the stock above $400, its highest since May 22. The perpetual preferred shares also saw significant gains, with STRK climbing 15% and STRF adding 7.5%.
Interest Rates and Investment Appeal
Beyond the potential S&P 500 inclusion, the attractive yields of Strategy’s perpetual preferred stocks are drawing investors, especially in the current interest rate environment. With yields ranging from 6.6% to 11.1%, these stocks offer returns that surpass the Federal Reserve’s target rate, making them appealing to income-focused investors.
Conclusion
Bitcoin’s record monthly close has not only bolstered Strategy’s financial standing but also heightened the prospects of its inclusion in the S&P 500. This development, coupled with the attractive yields of its perpetual preferred stocks, has positioned Strategy as a focal point for investors seeking exposure to both cryptocurrency and traditional equity markets.
MicroStrategy’s Path to S&P 500 Inclusion Amid Bitcoin Surge:
- MicroStrategy secures Nasdaq-100 inclusion after bitcoin-fueled stock surge
- MicroStrategy’s ‘financial engineering’ powers ascent to Nasdaq 100
- MicroStrategy’s bitcoin-powered surge takes it closer to Nasdaq 100 doorstep
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