Block Become a member of the S&P 500 on July 23, to replace Hess after the acquisition of $ 54 billion of the oil producer by Chevron, a repeat sharing that yielded the shares of Block with 10.7% of the opening of 18 July from $ 72.01 to $ 79.69 per Perstime.
The company announced the addition on July 18These investors encourage to position funds for index tracking that should buy shares to reflect the benchmark.
Block called the move “a milestone that reflects the power of our company and the work of thousands of people building aids to increase access to the economy”, with reference to products in Square, Cash app“ AfterPay, Tidal, Proto and Bitkey.
Despite the price increase, the shares of Block are still 13% in the time frame of the year.
Another Bitcoin holder in the index
Block is now the Third Public Entity to become a member of the S&P 500 that Bitcoin contains (BTC) In his treasury, next to Tesla and Coinbase.
According to Bitcoin treasuries facts” Tesla is the tenth largest BTC holder among listed companies, with a stock of 11,509 BTC worth almost $ 1.4 billion from the moment of press. The company has the ninth biggest weight of the index.
Coinbase Holds the place as the 12th largest treasure chest, with 9,267 BTC with a value of around $ 1.1 billion. It has a weighting of 0.18% in the S&P 500, alongside companies such as Intel and Doordash.
Block Joins with a weight of 0.09% and 8,584 BTC in reported interests, so that the company was founded by Jack Dorsey The owner of $ 1 billion in Bitcoin.
Changes in observed risk
The rally in the shares of Block emphasizes how the index mechanics can cross with sentiment around fintech names, which this year lags behind the broader technology-guided market.
S&P 500 membership can reduce the observed risk, broaden the shareholder base and attract institutional investors with mandate-restricted investment.
Nevertheless, the implementation of core companies will determine whether the company maintains the repetition. Square’s Merchant Services, Cash App’s Consumer Finance Suite and the Buy Now, Pay Lattter Arm, AfterPay, remain important entry drivers.
At the same time, newer initiatives such as self -spice wallet Bitkey and music platform Tidal contribute to diversification.
