Jack Dorsey’s Block to Join S&P 500 in Landmark Crypto-Fintech Milestone

Block’s announcement triggered a rally in both the markets and crypto circles. The stock surged between 9% and 11% in after-hours trading on Friday, reaching approximately $80.88, with gains continuing into the following sessions. This uptick reflects heightened investor optimism, a predictable “S&P effect,” where inclusion attracts inflows from index-tracking funds and draws increased analyst attention. Historically, stocks tend to outperform in the months leading up to their S&P 500 entry, then level off in the period following inclusion.

S&P Dow Jones Indices evaluates companies based on several criteria: minimum market capitalization, adequate public float, sustained positive earnings, and sectoral balance. Block cleared all these hurdles. With a market cap around $43–44 billion and four straight profitable quarters under GAAP, it met the technical entry requirements. While larger names like Robinhood Markets and Applovin were also eligible, S&P’s selection is discretionary. Block’s combination of fintech strength and growing crypto relevance likely bolstered its appeal.

Block’s crypto credentials helped sharpen its profile. The company holds 8,584 BTC, worth over $1 billion, as part of its treasury, making it one of the top corporate bitcoin holders. Block follows Coinbase, which joined the S&P 500 on May 19, 2025, becoming the first crypto-native firm in the index. Now, Block’s entry underscores growing institutional acceptance of firms with significant crypto exposure.

Inclusion ensures exposure through broad index-tracking funds, like ETFs and passive mutual funds, adding a long-term base of support for Block’s stock. Landing in the S&P 500 also bolsters the company’s corporate reputation, potentially attracting more analyst coverage and recurring institutional engagement. Additionally, Block and Coinbase’s entries may pave the way for other crypto-linked firms. Companies like Strategy, which holds bitcoin on its balance sheet and now qualifies by market cap, may also be considered for future inclusion.

Despite the breakout, Block has trailed the S&P’s year-to-date performance by about 14%, even after the recent surge. Plus, data shows such companies typically cool off within six months of inclusion. Risks include macroeconomic headwinds like higher interest rates, regulatory scrutiny, particularly related to its crypto-facing Cash App and crypto volatility, which can impact Block’s earnings narrative.

Block officially enters the S&P 500 before market open on July 23. In the short term, index-tracking inflows and continued momentum are likely. Over the mid-term, the stock will probably revert to broader sector trends and fundamentals, with crypto’s ups and downs playing a key role in investor sentiment. Long-term, inclusion strengthens Block’s credibility among mainstream investors, signaling that financial services innovation combined with crypto integration is gaining traction in the U.S. capital markets.

Block’s entrance into the S&P 500 is more than symbolic, it’s a milestone in fintech and crypto’s blending. The stock's surge reflects investor confidence in its business model and bitcoin strategy. However, whether this translates to sustained outperformance remains to be seen. For now, Block stands at a crossroads: a fintech disruptor and crypto pioneer stepping onto the mainstream stage.