Shares of software-company-turned-serial-Bitcoin-acquirer Strategy (MSTR) are down 2% on news the company has once again been excluded from the benchmark S&P 500 index.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Cryptocurrency bulls and shareholders of Strategy had hoped that the company would finally be added to the S&P 500. Analysts said the highly anticipated move would help to further legitimize the crypto industry and the companies that support it.
Stocks that are added to the S&P 500 often rise as mutual funds and exchange-traded funds (ETFs) that track the index’s performance are required to buy their shares. S&P Dow Jones, which manages the index, undertakes a quarterly rebalancing, adding and eliminating certain stocks based on their performance and market weighting.
Long-Time Coming
With consistent profitability, Strategy has met all the requirements for inclusion in the S&P 500 for several quarters, and many advocates saw previous exclusions from the index as a snub against both Strategy and the broader crypto sector. Unfortunately, S&P Dow Jones has once again ruled against Strategy.
As of June 30 this year, Strategy, led by entrepreneur Michael Saylor, held 597,325 Bitcoin (BTC) on its balance sheet, making it the world’s largest corporate owner of the cryptocurrency. Strategy’s Bitcoin holdings are currently worth just over $65 billion based on Bitcoin’s current price of $111,000 per digital token.
Is MSTR Stock a Buy?
The stock of Strategy has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 12 Buy and one Sell recommendations made in the last three months. The average MSTR price target of $564.15 implies 67.95% upside from current levels.
