Michael Saylor’s MSTR Poised for S&P 500 Inclusion Consideration Once Again
Strategy’s Potential S&P 500 Inclusion Boosted by Bitcoin Gains
Strategy (MSTR) is poised to achieve its second consecutive quarterly profit in the third quarter, driven by a significant rise in bitcoin’s value. This performance aligns the company with the potential for inclusion in the S&P 500 index. As reported by Jeff Walton, Chief Risk Officer of Strive, Strategy’s earnings are expected to reach approximately $2.9 billion, or $10 per share, due to bitcoin’s price increase from $107,000 to $114,000 by the end of the quarter.
Key Financial Indicators Support Strategy’s Growth
Over the last four quarters, Strategy is projected to have earned around $22.80 per share. This analysis accounts for an estimated deferred tax liability of $970 million, resulting in a net income estimate of $2.9 billion. The trailing twelve-month earnings per share (EPS) is anticipated to be $22.8, thanks to positive EPS figures in Q2 and an estimated positive EPS of $10.1 in Q3 2025. These gains help counterbalance negative results from Q4 2024 and Q1 2025.
Compatibility with S&P 500 Inclusion Criteria
The positive trailing twelve-month EPS satisfies one of the prerequisites for S&P 500 consideration. Other criteria include a positive latest quarter performance, over 50% public float, and an average daily trading volume exceeding 250,000 shares, all of which Strategy fulfills. However, the S&P 500 committee is not obligated to add a company solely based on meeting these conditions. The fourth-quarter 2025 S&P 500 rebalancing is slated to take effect after the market closes on December 19.
Dividend Rate Increase for Strategy’s Preferred Stock
Apart from potential S&P 500 inclusion, Strategy has announced an increase in its dividend rate on perpetual preferred stock STRC from 10% to 10.25%. Cash dividends are set to be paid on October 31, with future rates to be determined using the five-day VWAP of STRC prior to the month’s final trading day, according to analyst Ben Werkman. Currently, priced at $97 within the $95 to $98.99 range, this adjustment reflects a 25 basis point increase. Strategy plans to continue adjusting the rate to edge STRC closer to its $100 par value.
MSTR shares have seen a 2.9% uptick in premarket trading, corresponding with a 3% increase in bitcoin’s price, now quoted at $116,700. For more updates on Strategy’s financial performance and market position, stay tuned to Emegypt.
