Bitcoin, which has seen its price double since this time last year, has surged as a sudden crisis has engulfed the Federal Reserve.
Sign up now for CryptoCodex—A free crypto newsletter that will get you ahead of the market
The bitcoin price has, however, effectively treaded water since December, hitting a fresh all-time high in August only to drop back to near where it began the year even as the market braces for $20 million to $28 million of daily buying pressure.
Now, as increasingly desperate traders fear the worst, Michael Saylor’s bitcoin acquisition company Strategy could be granted a surprise reprieve—just as U.S. president Donald Trump’s son Eric predicts the bitcoin “floodgates are starting to open.”
Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run
Strategy chief executive Michael Saylor has inspired a flood of copycat bitcoin acquisition companies, helping to support the bitcoin price.
Getty Images
Strategy, and its $70 billion worth of 630,000 bitcoin, could on Friday be added to the S&P 500 stock market index.
In December last year, Strategy was added to the Nasdaq 100 in a move that confounded some skeptics.
If approved for the S&P 500, Strategy would become the first bitcoin treasury company on the benchmark, with some of the biggest index funds and exchange-traded funds (ETFs) looking to replicate the index’s performance by buying shares of the newly included company.
Friday’s S&P 500 rebalancing would take effect on September 19.
Strategy’s share price has sunk 30% from its November peak with the company effectively treading water through 2025 despite U.S. president Donald Trump, dozens of copycat companies and Wall Street’s bitcoin exchange-traded funds (ETFs) creating what could only be described as its perfect year.
Sign up now for CryptoCodex—A free crypto newsletter that will get you ahead of the market
The bitcoin price has repeatedly high all-time highs this year but bitcoin has failed to meaningfully break into new territory.
Forbes Digital Assets
The company, which Saylor pivoted from an enterprise software company to a bitcoin acquisition vehicle in 2020, meets the requirements for addition as a U.S. listed company with a market capitalization above the $8.2 billion threshold, daily trading volumes of above 250,000 shares, a public float greater than 50%, and positive earnings both in the latest quarter and on a trailing twelve-month basis.
The S&P Dow Jones Indices committee retains discretion in which companies are added and they may think Strategy’s bitcoin-buying model is inappropriate for the index.
Meanwhile, shares of Trump family-backed bitcoin mining company American Bitcoin soared on its Nasdaq debut.
American Bitcoin, which is also building a bitcoin treasury in the style of Michael Saylor’s Strategy, saw its stock rise almost 20% to just over $8 per share on its first day of trading, making Eric Trump’s stake worth an estimated $950 million at its peak.
“The floodgates are starting to open,” Eric Trump told Bloomberg, adding in comments to Reuters that, “crypto is exploding.”