The market is buzzing with speculation that MicroStrategy (MSTR), the enterprise software firm renowned for its massive Bitcoin treasury, may be on the verge of inclusion in the prestigious S&P 500 index. This anticipation appears to be a primary driver behind the recent surge in its common stock and, more notably, its perpetual preferred shares. The potential catalyst was Bitcoin's record-breaking monthly close for June, which settled at an impressive $107,750. According to analysis by MSTR analyst Jeff Walton, this price level translates into a monumental positive earnings impact of approximately $11 billion for the company. This accounting gain is projected to boost its earnings per share to around $39.50, crucially allowing it to report a net positive income over the most recent four quarters—the final hurdle for S&P 500 eligibility.

MicroStrategy's Stock and Preferred Shares Surge on Index Hopes

While the official announcement regarding S&P 500 inclusion is not expected until September, traders appear to be front-running the event. On Monday, MSTR common stock rallied 5%, pushing its price above the $400 mark to its highest level since May 22. However, the more dramatic movements were seen in its perpetual preferred shares. The STRK series skyrocketed by 15% to a price of $121, while the STRF series climbed a healthy 7.5%, and the STRD series added 3%. Inclusion in the benchmark index is a significant event for any company, as it often triggers substantial demand from institutional funds and ETFs that are mandated to track the S&P 500, creating forced buying pressure and typically lifting the stock's valuation.

Yields and Returns Attract Diverse Investors

The appeal of MicroStrategy's preferred shares isn't solely based on index inclusion speculation. These instruments offer compelling yields that stand out in the current interest rate environment. With the Federal Reserve's target rate at 4.25%-4.5%, the effective yields on these shares are highly attractive. STRK's advance to $121 gives it an effective yield of 6.6%, STRF now offers a robust 8.8%, and STRD provides an even higher 11.1%. These yields are particularly noteworthy given recent calls by political figures like Donald Trump for lower U.S. interest rates. Since its launch on February 6, STRK has delivered a staggering 42% return, far outperforming Bitcoin's 11% gain and the S&P 500's 2% increase over the same period, excluding any dividend payments.

Solana (SOL) Gains as Staking ETF Sees Strong Debut

In other market-moving news, the altcoin space saw significant activity with the launch of the first U.S.-listed crypto staking exchange-traded fund (ETF). The REX-Osprey Solana + Staking ETF (SSK) had a successful first day, closing with $33 million in trading volume. Bloomberg ETF analyst Eric Balchunas characterized the launch as better than average for a new ETF listing, noting its volume was considerably stronger than recent Solana or XRP futures ETF launches. The product offers investors a streamlined way to gain exposure to Solana's price action while earning staking rewards, without the technical complexity of managing wallets and validators. The positive reception helped propel the price of SOL, which traded above $150, marking a roughly 4% increase on the news. This development follows a pivotal SEC ruling in late May that clarified crypto staking does not inherently violate securities laws, opening the door for more such products in the U.S. market.

The broader institutional appetite for crypto was further validated by a report from Presto Research, which highlighted that BlackRock’s iShares Bitcoin ETF (IBIT) is now on track to generate more annual revenue than its flagship iShares Core S&P 500 ETF (IVV). Despite managing far fewer assets ($75 billion for IBIT vs. $624 billion for IVV), IBIT's 0.25% fee is projected to yield $187.2 million annually, slightly more than IVV's revenue from its minuscule 0.03% fee. This demonstrates investors' willingness to pay a premium for trusted, regulated access to Bitcoin, underscoring the ongoing institutionalization of the asset class. Amid these developments, the crypto market saw broad gains, with Bitcoin (BTC) surging 3.6% to break above $109,000, and Ethereum (ETH) climbing an impressive 8.6% to hit $2,608, establishing new support at $2,565 and testing resistance near $2,617.