Block (Square) Joins the S&P 500: A Boost for Bitcoin Exposure?

Block (Square) Enters the S&P 500, Shares Surge

Jack Dorsey's Block (formerly Square), known for its Cash App and Square payment platforms, is set to join the S&P 500 index on July 23rd. This move follows Hess Corp's acquisition by Chevron and triggered an 8.5% jump in Block's stock price in after-hours trading. The company had already closed Friday's session up 2.95%.

What does this mean?

Inclusion in the S&P 500 forces index-tracking mutual funds and institutional investors to buy Block shares, creating significant demand.

Coinbase (COIN) experienced a similar surge earlier this year when it became the first crypto-native company to be added to the index.

Block's Bitcoin Bet

Beyond its core payments business, Block is actively integrating Bitcoin into its operations. The company piloted real-time Bitcoin payments and aims for a wider rollout next year. More significantly, Block holds a substantial amount of Bitcoin on its balance sheet – currently 8,584 BTC, making it the 11th-largest publicly traded corporate holder. This equates to indirect Bitcoin exposure for major investment funds adding Block to their holdings.

Key Takeaways:

• S&P 500 Inclusion: Block's addition drives stock price up.
• Institutional Investment: Index funds will now include Block.
• Bitcoin Exposure: Funds get indirect BTC exposure due to Block's treasury.

Market Overview:

• S&P 500: 6,296.79 (-0.01%)
• Dow 30: 44,342.19 (-0.32%)
• Nasdaq: 20,895.66 (+0.05%)

Top Movers:

• Top Gainer: STEM Stem, Inc. +45.63%
• Top Loser: MLGO MicroAlgo Inc. -17.57%