Crypto Currents: Strategy qualifies for S&P 500, decision looms

Bitcoin treasury firm Strategy now qualifies for inclusion in the S&P 500, with a decision expected this week that could mark a landmark for the integration of digital assets into mainstream U.S. equities. The potential inclusion comes as the corporate trend of adopting bitcoin as a treasury asset accelerates globally, while U.S. lawmakers return to Washington with a focus on establishing a clear regulatory framework for the crypto market. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

STRATEGY QUALIFIES FOR S&P 500: Strategy (MSTR) now meets all requirements for potential inclusion in the S&P 500 index after reporting a record-breaking Q2. The company posted $10B in net income, a turnaround made possible by new fair-value accounting standards adopted in January that allow it to recognize unrealized gains on its bitcoin holdings. With consistent profitability established, the firm meets the index’s criteria for market cap, trading volume, and positive earnings. The S&P Dow Jones Indices committee is expected to announce its September rebalancing decisions on Friday, September 5, with any changes taking effect on September 19. If added, Strategy would be the first bitcoin-treasury company to enter the benchmark index.

THE GREAT TREASURY STRATEGIC DEBATE: As the bitcoin treasury model gains followers, a debate over strategy is emerging between two of its most high-profile proponents: Peter Thiel and Michael Saylor. Saylor, CEO of Strategy, has championed an “infinite money glitch” strategy of issuing stock or debt to aggressively accumulate bitcoin, a model now followed by 174 public companies. Thiel’s strategy is more diversified; his venture capital firm, Founders Fund, has invested in both bitcoin and ether and backed companies like crypto exchange Bullish (BLSH). Thiel’s firm also holds a stake in BitMine Immersion Technologies (BMNR). While Saylor’s all-in approach has been successful, some analysts warn it leaves the companies vulnerable to a “death spiral” if bitcoin’s price drops significantly, shrinking their access to capital.

JAPANESE FIRMS ACCELERATE BITCOIN BUYS: The corporate treasury model continues to gain traction overseas, particularly in Japan. According to a company announcement, Metaplanet has secured shareholder approval for a capital structure overhaul that clears a path for it to raise up to $3.7B, earmarked for its bitcoin accumulation strategy. The company recently purchased another 1,009 bitcoin for $112M, bringing its total holdings to 20,000 BTC and making it the sixth-largest corporate holder globally, overtaking Riot Platforms (RIOT).

TRUMP-LINKED WLFI TOKEN LAUNCHES TO VOLATILITY: The World Liberty Financial (WLFI-USD) token, a DeFi project publicly backed by the Trump family, launched on major exchanges including Binance and Coinbase (COIN). The token opened trading at over 30c, implying a fully diluted valuation of over $30B. However, the price quickly fell as much as 55% amid concerns of insider selling and whale manipulation. In response to the price drop, the WLFI team proposed a token buyback and burn program using fees from its protocol-owned liquidity. In other Trump-related news, American Bitcoin (ABTC), the Trump family’s crypto mining company, is expected to go public via a merger with Gryphon Digital (GRYP), trading under the ticker “ABTC”.

PRICE ACTION: As of the time of writing, bitcoin (BTC-USD) was trading around $110,952.32, while ether (ETH-USD) was trading near $4,303.04, according to price data provided by Coindesk.