Block Inc., Fintech company founded by the co-creator of Twitter, Jack Dorsey, is expected to join the prestigious S&P 500 index on July 23.
The announcement, confirmed by S&P Dow Jones Indices on July 18, reveals that Block will replace Hess Corporation, recently acquired by Chevron.
The block becomes the second company aligned in crypto in S&P 500 after Coinbase
Originally launched as a square in 2009, Block began as a payment service provider before investing in Bitcoin infrastructure.
Thanks to Cash App and its corporate treasure, the company has transparent the cryptocurrency into its offers in a transparent manner, positioning itself as a key player in the emerging financial space.
The inclusion of the company in the S&P 500 reflects its ability to meet the strict criteria of the index. These include sustained profitability, significant market capitalization and high liquidity.
The S&P 500 is considered a global scale as a barometer of economic force, and its constituents are often favored by institutional investors who are looking for a long -term value.
This development marks an important step for companies aligned by cryptocurrency in traditional finance.
With the entrance to Block, it becomes the second company focused on the crypto to join the index, after Coinbase, the greatest exchange of American crypto.
In particular, the addition of block also brings the total number of S&P 500 companies with a direct Bitcoin three exhibition, joining Coinbase and Tesla.
“The S&P 500 inclusion of the strategy (when this happens) will be the largest catalyst for the adoption of mass corporate bitcoin this cycle,” said Ben Pham, financial director of the asset management company, Strive.
This decision comes at a time when the cryptography market is experiencing a renewal of optimism. The approval of new pro-Crypto laws like the Genius and Clarity Act in the United States fuels this renewed feeling.
In addition, the prices of bitcoin and ethereum have reached new heights in last week. The push occurred in a stronger institutional interest for the emerging sector.
Market analysts provide that these developments will further accelerate the traditional adoption of cryptocurrency. They also believe that this could increase the probability that other companies focused on the crypto-food entering high-level clues such as the S&P 500.
Given this momentum, speculation increases that other companies rich in crypto such as strategy (formerly microstrategy) could reach the index. Directed by Michael Saylor, the strategy contains more than 600,000 BTC, making it the largest public holder in Bitcoin.
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