[Vaneck Executives: Block Is Expected To Become The First Company In The S&P 500 To Hold Bitcoin] Matthew Sigel, Head Of Digital Asset Research At Vaneck, Posted On The X Platform That The Financial Technology Company Block Is Expected To Become The First Company In The S&P 500 To Hold Bitcoin. For A Stock To Be Included In The Index, It Must Meet Six Major Criteria, Including: 1) Market Value Of More Than $18 Billion; 2) Public Shareholding Of More Than 10%; 3) Earnings In The Most Recent Quarter Should Be Positive, And The Sum Of GAAP Earnings In The Previous Four Quarters Should Also Be Positive; 4) High Liquidity; 5) Listed For 12 Months; 6) The Company Is Headquartered In The United States.
Block Met The Last Criterion (earnings) After The Release Of The First Quarter Of 2024 Financial Report. However, Inclusion In The S&P 500 Index Does Not Strictly Follow The Formula, But Is At The Discretion Of The Index Committee. Historically, Companies That Meet All Requirements Have Been Included Within 3 To 21 Months (Lulu Is A Special Case, Which Took 65 Months).
Industry Diversification Is One Of The Factors Considered By The Index Committee, And They Aim To Maintain An Industry Composition That Is Roughly Consistent With Industry Economics. The Phrase "in Line With Sector Economics" Is Not Clearly Defined, So The S&P Total Market Index Can Be Used As A Reference: Financials Currently Account For 13.9% Of The S&P 500 And 14.6% Of The Broader Index, Suggesting That There Is Still Room For Financials To Increase