Strategy has established itself as the spearhead of Bitcoin corporate treasuries. This position made its MSTR stock an obvious candidate for entry into the VIP club of the S&P 500, but this has not been the case. A real warning, according to JPMorgan analysts.
The S&P 500 does not include Strategy’s MSTR stock
Since 2020, Strategy—formerly MicroStrategy—has established itself as the publicly traded company that accumulates the most Bitcoin. Indeed, it has continued to increase its holdings over time, to the point where it now has a portfolio estimated at $73 billion at the current BTC price.
This race has greatly benefited its MSTR stock, which has risen more than 2,000% since that time. However, it must be acknowledged that the 30% decline since its peak in November 2024 could signal a certain mistrust on the part of its shareholders in the face of increasingly questionable fundraising procedures.
In any case, Strategy seemed to tick all the boxes for its MSTR stock to be included in the prestigious S&P 500, the index that brings together the 500 largest US companies listed on the stock market. In fact, inclusion requires consistent profitability, a market capitalization of over $8 billion, daily trading volumes of over 250,000 shares, and positive earnings over the last 12 months.
But this was clearly not enough, as the S&P 500 ultimately did not include Strategy in its rebalancing at the beginning of September. This was a real “blow to crypto treasuries,” according to analysts at investment bank JPMorgan.
A real blow to Bitcoin treasuries
Analysts were quick to seize on this snub to assess the true level of sympathy currently enjoyed by crypto company treasuries, in the face of what JPMorgan identifies as “fatigue” in their share prices and financing activities.
The situation is all the more fragile given that Nasdaq recently issued a warning about these cryptocurrency-holding companies, which it intends to monitor more closely. One of the reasons for this is the apparent withdrawal of Washington regulators, following Donald Trump’s call for more relaxed rules in this area.
According to JPMorgan analysts, this rejection by the S&P 500 seems to indicate that the model of indirect exposure to Bitcoin proposed by these companies may “have reached its limits.” The main risk is a domino effect with serious consequences if other stock indices—in which MSTR stock is currently included—ultimately decide to exclude it as well.
In this context, investors could turn to companies that offer effective and operational crypto activities, such as cryptocurrency exchange platforms or Bitcoin miners. This is because simply holding BTC in corporate treasuries would begin to raise questions of relevance.
