Saylor Joins Billionaires While MicroStrategy Misses S&P 500 Mark

In the intricate dance of financial milestones, some aspirants leap ahead while others take a step back. Michael Saylor, the celebrated founder of MicroStrategy, can rejoice in being recognized on the Bloomberg Billionaires Index, his fortune now exceeding a notable $7.3 billion. Yet, in a twist of irony, MicroStrategy itself has been overlooked in the latest S&P 500 index reshuffle.

Michael Saylor’s Entry into Billionaire Echelons

Michael Saylor’s rise to the Bloomberg Billionaires Index is primarily fueled by his substantial holdings in MicroStrategy Stock. With approximately 8% of the company’s shares, including 19.6 million class B and 382,000 class A shares, his stake is valued at around $6.72 billion. Additionally, Saylor holds a cash reserve of $650 million, a figure bolstered by lucrative stock sales set for 2024.

While Saylor publicly acknowledged holding 17,732 Bitcoins as of October 2020, Bloomberg astutely excluded this from his net worth calculation due to unverifiable ownership continuity.

While Saylor treads his path to the billionaires’ club, other crypto leaders like Coinbase CEO Brian Armstrong rank higher with a net worth of $12.8 billion, and Binance’s Changpeng Zhao commands a fortune of $44.5 billion, holding the 40th spot.

MicroStrategy’s Elusive Induction to the S&P 500

Despite having met all eligibility criteria, MicroStrategy found itself passed over in the S&P 500’s recent rebalancing. Instead, Robinhood, AppLovin, and Emcor Group were selected to enter the iconic index.

The move was not entirely unforeseen. Bloomberg analyst Eric Balchunas likened MicroStrategy’s situation to Tesla’s past, pointing out that the S&P 500 operates much like an actively managed fund spearheaded by a confidential committee endowed with broad discretion. This flexibility means that even companies meeting explicit criteria might face exclusion due to perceived volatility or unique business models that could threaten the index’s stability.

The broader narrative here underscores the dynamic and unpredictable nature of index inclusiveness, which weighs not just on tick-box compliance but also on strategic calculus that shapes the index’s future resilience.