Encryption assets are heading mainstream: top companies are increasing their investment in Bitcoin (BTC) and Solana (SOL), Coinbase is about to be listed in the S&P 500.

Source: Cointelegraph Original Text: "Cryptocurrency Assets Going Mainstream: Top Companies Increasing Investment in Bitcoin (BTC) and Solana (SOL), Coinbase Set to Join S&P 500"

After experiencing numerous doubts such as "bubble", "Ponzi scheme", and "illegal financing", crypto assets are now rapidly moving towards the central stage of mainstream finance at an unprecedented pace. A survey released by Citi Securities Services in 2023 shows that nearly three-quarters of the financial institutions surveyed are actively taking relevant measures, compared to 47% in 2022.

Since the beginning of this year, a series of recent actions from top financial institutions and listed companies have become the best footnote for this trend.

On Monday (May 12), DeFi Development Corporation, an AI-driven real estate platform listed on NASDAQ, announced that it has purchased 172,670 Solana (SOL) tokens again, with an average purchase price of $136.81, totaling an investment of $24 million. The company now holds approximately 600,000 SOL tokens, which, according to the current market value, amounts to about $102.54 million.

Price trend of SOL token this year. Source: Yahoo Finance

Company CEO Joseph Onorati stated in an interview with the media: "Breaking the $100 million position is an important milestone, but this is just the beginning. Our strategy is to continuously and boldly accumulate assets when the right opportunities arise, and our goal is to buy in as quickly as possible."

Last week, the price of Bitcoin (BTC) once again broke through the $100,000 mark. On this occasion, Strategy (formerly MicroStrategy) increased its holdings by 13,390 Bitcoins at an average price of $99,856, investing $1.34 billion. Prior to this, Strategy's first-quarter financial report revealed that the company recorded a $5.9 billion impairment due to the decline in Bitcoin prices, resulting in a net loss of $4.2 billion and a loss of $16.49 per share.

Nevertheless, analysts still give Strategy a "buy" rating and maintain a high target price. For example, Mizuho Securities set a target price of $563 for Strategy, which is about 40% higher than its current stock price.

According to statistics, there are currently more than 7 companies in the market that imitate Strategy by using Bitcoin as the core of their corporate asset allocation.

Additionally, it is worth noting that the cryptocurrency platform Coinbase will replace Discover Financial Services in the S&P 500 index on May 19, officially becoming the first cryptocurrency exchange to be included in this index.

Coinbase's stock price performance this year. Source: Google Finance

Coinbase announced last week that it will acquire the Dubai-based major crypto derivatives exchange Deribit for $2.9 billion. This transaction is the largest acquisition in the crypto industry to date and will help Coinbase expand its business footprint outside the United States. Nevertheless, Coinbase's stock price has fallen by about 17% this year, underperforming compared to Bitcoin's performance during the same period (which has increased by about 10%).

Companies included in the S&P 500 index typically see their stock prices rise, as many funds that track the index will accordingly include them in their portfolios.

Related recommendations: Enterprises are the biggest buyers of Bitcoin (BTC) this year, retail investors should step aside.