The market is buzzing with anticipation as Strategy (MSTR), the enterprise software firm renowned for its aggressive Bitcoin accumulation strategy, shows strong signs of being on the deck for inclusion in the prestigious S&P 500 index. This speculation has ignited a significant rally not just in its common stock but, more notably, in its series of perpetual preferred shares. On Monday, MSTR common stock surged by 5%, pushing its price above the $400 mark to its highest level since May 22. However, the more dramatic action was seen in its preferred stocks. The STRK series skyrocketed by an impressive 15%, while STRF climbed 7.5%, and STRD posted a respectable 3% gain. This flurry of activity suggests that savvy traders may be front-running an official announcement, which is not expected until September, positioning themselves for the inevitable institutional demand that follows an S&P 500 listing.

MSTR's S&P 500 Case Strengthens on Bitcoin's Performance

The foundation for this S&P 500 eligibility hinges directly on Bitcoin's market performance. According to analysis by Jeff Walton, Bitcoin's closing price of $107,750 at the end of June was the critical catalyst. This price level translates into a massive positive earnings impact of approximately $11 billion for Strategy. Crucially, this lifts the company's earnings per share (EPS) to around $39.50, ensuring it clears the final hurdle for S&P 500 consideration: demonstrating a net positive sum of its earnings from the most recent four quarters. Inclusion in the benchmark index is a major milestone for any company, as it unlocks a new wave of capital from large institutional funds and ETFs that are mandated to track the S&P 500, often leading to a sustained price increase for the newly added stock.

Perpetual Preferreds Offer Compelling Yields

Beyond the S&P 500 narrative, Strategy's perpetual preferred stocks are attracting investors for another fundamental reason: their attractive yields. In a macroeconomic environment where the Federal Reserve's target rate sits between 4.25%-4.5%, these instruments offer a significant premium. For instance, the recent 15% surge in STRK pushed its price to $121, resulting in an effective yield of 6.6%. Its performance has been stellar; 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 modest 2% rise over the same period, excluding dividends. The other series are also compelling, with STRF now offering an effective yield of 8.8% and STRD providing a hefty 11.1%, making them powerful options for yield-seeking investors, especially amidst calls to lower U.S. interest rates.

Broader Market Bullishness Supports BTC Rally Above $108K

This MSTR-specific optimism is unfolding against a backdrop of strengthening institutional adoption and bullish sentiment across the entire cryptocurrency market. The gradual embrace of digital assets by mainstream finance is accelerating. A significant signal came from Bill Pulte, the director of the Federal Housing Finance Agency, who ordered Fannie Mae and Freddie Mac to prepare to count cryptocurrency holdings as a valid asset for mortgage applications. This move could deeply entrench Bitcoin in the U.S. housing market, a cornerstone of the world's largest economy. As noted by FxPro analyst Alex Kuptsikevich, the total crypto market capitalization has climbed to $3.31 trillion and is nearing a critical volatility threshold between $3.40–$3.55 trillion, a zone that has previously triggered seller activation. The market's Fear and Greed Index has also risen to 74, teetering on the edge of "Extreme Greed." This momentum is further evidenced by spot Bitcoin ETFs, which have recorded 12 consecutive days of net inflows, totaling $548 million in the latest session. This sustained institutional buying pressure, combined with positive macro developments, helped propel BTC to briefly top $108,000, underscoring the robust demand for the leading digital asset.