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    Home»DeFi»70% Probability of S&P 500 Membership Following Q3 Earnings Reports
    DeFi

    70% Probability of S&P 500 Membership Following Q3 Earnings Reports

    Ethan CarterBy Ethan CarterOctober 29, 2025No Comments3 Mins Read
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    Even with a decline in stock prices and a decrease in Bitcoin acquisitions, Strategy, the largest corporate Bitcoin holder globally, has a 70% probability of being included in the S&P 500 index by year-end, as per crypto market intelligence firm 10X Research.

    Scheduled for release on Oct. 30, Strategy’s third-quarter 2025 earnings are anticipated to show an estimated $3.8 billion gain from fair-value Bitcoin (BTC) accounting.

    If the quarter is profitable, there’s a 60%–70% likelihood that the stock will enter the S&P 500 effective Dec. 19, according to a recent report from 10X Research.

    “Capitulation often feels like the end — until it subtly signals the start,” the report notes. “The October 30 earnings release could spark renewed speculation around the December 5 S&P 500 inclusion decision — a scenario we estimate at about a 70% chance.”

    Although investor sentiment towards the stock is currently “washed out,” the earnings report is seen as an “obvious catalyst” for Strategy, according to 10X.

    019a2f2e 4f27 77f6 beef 78d6d78d89a6
    Strategy Bitcoin buying, Strategy NAV 30-day average, 1-year chart. Source: 10x Research

    Bitcoin slowdown and valuation strain

    This forecast comes amidst widespread concerns regarding the viability of digital asset treasuries (DATs), as numerous companies have witnessed their market net asset value (mNAV) drop below crucial thresholds this year.

    Related: ‘No BlackRock, no party’ for Bitcoin, altcoin ETF investments: K33 Research

    The mNAV ratio assesses a company’s enterprise value relative to the worth of its crypto holdings. An mNAV exceeding 1 allows firms to raise funds by issuing new shares to acquire digital assets, whereas values below 1 complicate capital and asset expansion.

    Several DATs, including Strategy, Bitmine, Metaplanet (MTPLF), Sharplink Gaming (SBET), Upexi (UPXI), and DeFi Development Corp (DFDV), have seen their mNAV decline beneath this crucial threshold, effectively limiting their ability to secure funding for further acquisitions.

    019a2f2e 5122 7ea9 801d c1da32f6191e
    Digital asset treasuries’ mNAVs have experienced significant pressure since June. Source: Standard Chartered

    Related: Solana ETFs may attract $6B in first year as SOL joins ‘big league’

    Crypto market liquidity will return at “this point” of the cycle

    Strategy has reduced its Bitcoin purchases over the past month, acquiring only 778 Bitcoin in October, marking one of its smallest monthly totals and a 78% decrease from the 3,526 BTC purchased in September.

    Despite the slowdown in Bitcoin purchasing and a $19 billion market correction, this might represent “exactly the moment” in the crypto market cycle when “liquidity returns and significant movements occur,” according to 10X Research.

    “With the NAV premium largely unwound, resulting in $18 billion in losses for investors and heightened volatility, the risk-reward dynamic has shifted from preparing for downside to anticipating what lies ahead.”

    In spite of a positive outlook, Strategy received a “B-” credit rating from S&P Global Ratings, categorizing it within the speculative, non-investment grade zone often linked to “junk bonds,” even with a favorable stock price forecast.

    This marks the first instance of a Bitcoin-treasury-centric firm obtaining an S&P Global evaluation, potentially setting a new precedent for traditional finance players assessing crypto companies.

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