This is not investment advice. The author has no position in any of the listed stocks.
Michael Saylor of MicroStrategy recently highlighted a significant achievement, stating that Coinbase is now eligible for inclusion in the global Premier Equity Index. This comes on the heels of an S&P announcement indicating that Coinbase will take the place of Discover Financial Services in the S&P 500, effective May 19th.
As the proverb says…
“First, they ignore you.
Then they laugh at you.
Then they fight you.
Finally, they add you to the S&P 500.”…or something like that.
– coinbase🛡️ (@coinbase)
This marks the first time a cryptocurrency-focused company has joined the S&P 500 Index, and Coinbase has cheekily celebrated this milestone on social media. Not too long ago, the company was entangled in a legal struggle with Ripple against the SEC’s regulatory stance under the Biden administration.
Q2 could be a huge revenue quarter for $MSTR.
The quarter wraps up on June 30 (just 52 days away).
Expect revenue release calls around August 5/6.
Technically, $MSTR qualifies for the S&P 500.
The market might react, wondering what surprises await…
– Jeff Walton (@punterjeff)
Coinbase’s addition to the S&P 500 may also guide MicroStrategy’s future moves, especially since the latter reported $5.8 billion in profits from Bitcoin holdings as of May 1, boasting an impressive 568,840 BTC acquired at an average price of $69,287.
Although Coinbase’s inclusion is a pivotal moment, its impact on Bitcoin prices in the short term is still uncertain. As MicroStrategy seems to be in flux, Bitcoin miners are currently generating around 450 BTC per day from an active circulation of approximately 2,087 BTC. This shift appears to be transforming Bitcoin into a deflationary asset, given the current annual inflation rate of -2.33%.
Interestingly, Coinbase’s stock rose about 10% in after-hours trading today, though it has experienced a 20% drop since the year began.
