Block Inc., a FinTech Company founded by Twitter co-creator Jack Dorsey, is set to join the famous S&P 500 Index on July 23rd.
The announcement, confirmed by the S&P Dow Jones index on July 18, reveals that Block will replace Hess Corporation, which was recently acquired by Chevron.
Block will become the second encrypted company in the S&P 500 after Coinbase
Originally launched as Square in 2009, Block began as a payment service provider before investing in Bitcoin infrastructure.
Through Cash App and its Corporate Treasury, the company has seamlessly integrated cryptocurrency offerings and positioned itself as a key player in the emerging financial sector.
The company’s inclusion in the S&P 500 reflects its ability to meet the strict standards of the index. These include sustained profitability, significant market capitalization, and strong liquidity.
The S&P 500 is globally considered a barometer of economic strength, and its components are often preferred by institutional investors seeking long-term value.
This development is an important milestone for businesses aligned with cryptocurrencies in traditional finance.
The Block entry will make it the second crypto-centric company to join the index, following Coinbase, the largest crypto exchange in the US.
In particular, the addition of Block will directly expose the total number of S&P 500 companies to three, joining Coinbase and Tesla.
“The S&P 500 inclusion of strategy (when it happened) will be the single biggest catalyst for the adoption of mass corporate Bitcoin for this cycle,” said Benfam, chief financial officer of the asset management company.
This move comes as the crypto market is experiencing a new optimism. The recognition of new pro-cryptic laws like genius and clarity in the United States is driving this new sentiment.
Additionally, Bitcoin and Ethereum prices have risen to new highs over the past week. The surge comes amidst a strong institutional interest in emerging sectors.
Market analysts expect these developments to further accelerate mainstream adoption of cryptocurrencies. They also believe this could increase the likelihood of other crypto-centric companies entering well-known indexes like the S&P 500.
Given this momentum, there is growing speculation that other crypto-heavy companies, such as Strategy (formerly MicroStrategy), can join the index next. Leading by Michael Saylor, Strategy owns over 600,000 BTC and is Bitcoin’s biggest publisher.
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