Block joins S&P 500, becomes third Bitcoin holding firm in the index

Block joined the S&P 500 on July 23, replacing Hess after the oil producer’s $54 billion acquisition by Chevron, a reshuffle that sent Block’s stock up 10.7% from the July 18 open of $72.01 to $79.69 by press time.

The company announced the addition on July 18, prompting investors to position ahead of index-tracking funds that must purchase shares to mirror the benchmark.

Block called the move “a milestone that reflects the strength of our business and the work of thousands of people building tools to increase access to the economy,” citing products across Square, Cash App, Afterpay, TIDAL, Proto, and Bitkey.

Despite the price increase, Block’s shares are still 13% in the year-to-date timeframe.

Another Bitcoin holder in the index

Block now becomes the third publicly listed entity to join the S&P 500 that holds Bitcoin (BTC) in its treasury, alongside Tesla and Coinbase.

According to Bitcoin Treasuries data, Tesla is the tenth-largest BTC holder among publicly listed companies, with a stash of 11,509 BTC worth nearly $1.4 billion as of press time. The company has the ninth-largest weight of the index.

Coinbase holds the spot as the 12th-largest treasury, with 9,267 BTC valued at approximately $1.1 billion. It has a 0.18% weighting in the S&P 500, alongside companies such as Intel and DoorDash.

Block joins with a 0.09% weight and 8,584 BTC in reported holdings, making the company founded by Jack Dorsey the owner of $1 billion worth of Bitcoin.

Changes in perceived risk

The rally in Block’s shares highlights how index mechanics can intersect with sentiment around fintech names, which have lagged behind the broader tech-led market this year.

S&P 500 membership can lower perceived risk, broaden the shareholder base, and attract mandate-limited institutional investors.

Still, execution on core businesses will determine whether the company sustains the rerating. Square’s merchant services, Cash App’s consumer finance suite, and the Buy Now, Pay Later arm, Afterpay, remain key revenue drivers.

At the same time, newer initiatives such as self-custody wallet Bitkey and music platform TIDAL contribute to diversification.