The S&P 500 Just Crowned Another Crypto-Backed Fintech King… And No, It’s Not Robinhood

By Stocks News   |   1 week ago   |   Stock Market News
The S&P 500 Just Crowned Another Crypto-Backed Fintech King… And No, It’s Not Robinhood

Well, would you look at that… Jack Dorsey finally got his company into the big leagues. Just two months after Coinbase made history as the first crypto exchange to crash the S&P 500 party, Block (you probably still call it “Square”) has officially joined the big leagues. That’s right, starting July 23rd, it will become part of the S&P 500, replacing Hess, which recently got swallowed whole by Chevron for $54 billion.

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Of course, Robinhood’s still standing outside the door with a confused look… wondering why it keeps getting ghosted by the index committee. (More on that in a sec.)

Block’s glow-up started way back in 2009 with a card reader, a dream, and a mission to help your local food truck charge you $11 for a cupcake. It was scrappy, it was smart, and for a while, it was just Square. But now, they’ve become the fintech equivalent of a one-man band.

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They’re moving over $240 billion in annual payments. They’ve got 57 million users. Cash App is basically the default for splitting bar tabs, paying rent, or gambling on the latest meme stock at 3 a.m. And while they’re still dominating the payment scene, Block’s also elbowed into crypto with mining chips, Lightning-enabled terminals, and a slick little self-custody wallet called Bitkey that Time named one of the best inventions of 2024. (Seriously. Time. Still a thing.)

Oh… and they’re sitting on more than 8,500 Bitcoin. Which has the crypto crowd completely unhinged. I just saw one guy on Twitter say they had “trillions in passive flows inching closer to Bitcoin.” While I wouldn’t go that far, they’re doing all the things investors want.

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Anyway, investors loved the S&P news. Block’s stock popped nearly 10% after hours, landing around $79. Not because of fundamentals or some new feature… just because once you’re added to the index, every ETF and fund that tracks it has to buy in. It's basically the stock market version of getting picked first in gym class, whether you're good at kickball or not. Sure, Block is still down 14% this year, but this boost could be the catalyst it needed. Especially with second-quarter earnings dropping August 7th.

Meanwhile, poor Robinhood… The app that gamified investing, sparked the GameStop frenzy, and had a $100B-ish valuation during peak pandemic euphoria, still can’t seem to win over the committee. Despite some solid user growth and a stock bounce, they’ve been snubbed again… and not for the first time. Why? The S&P 500 isn’t just about “being cool.” It demands consistent GAAP earnings, a big enough market cap (over $18B), and at least four quarters of profitability. Block checked all the boxes. Robinhood? Not so much. The committee prefers stable cash flows and fewer run-ins with the SEC, and frankly, Robinhood’s still living off its pandemic-era highlight reel.

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Not only is Block’s addition a win for Dorsey… but it’s another signal that the S&P 500 is warming up to fintechs with legit crypto chops. Coinbase was the first. Now Block’s in. And the common denominator is both have real infrastructures, steady growth, and actual profits. Robinhood, on the other hand, still hasn’t checked those boxes… but they’re moment is coming soon. Vlad’s gonna have to stay patient though. 

So congrats to Jack Dorsey. From tweeting in a hammock to running a $45 billion public company now rubbing elbows with Apple and Microsoft.

At the time of publishing this article, Stocks.News holds positions in Robinhood, Apple, and Microsoft as mentioned in the article. 

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