Strategy’s S&P 500 Snub Signals Caution for Corporate Bitcoin Treasuries: JPMorgan
11/9/2025

Strategy (MSTR) was denied entry into the S&P 500 index, despite meeting technical eligibility criteria, according to a report by JPMorgan (JPM). The bank views the decision as a sign of growing caution toward companies that operate as de facto bitcoin funds.

Analysts led by Nikolaos Panigirtzoglou noted that the index committee’s discretionary rejection represents a setback not just for Strategy, but for the broader trend of corporate crypto treasuries using balance sheets to accumulate bitcoin.

While Strategy’s inclusion in other major benchmarks, including the Nasdaq 100 and MSCI indices, has quietly facilitated bitcoin exposure for both retail and institutional investors, JPMorgan warns that the S&P 500 decision may signal a potential limit to this trend. The move could prompt other index providers to reassess their inclusion of bitcoin-heavy firms.

Compounding the pressure, Nasdaq has reportedly begun requiring shareholder approval for companies issuing new stock to fund cryptocurrency purchases. Strategy itself recently abandoned its no-dilution pledge, signaling a willingness to issue shares at lower multiples to continue financing bitcoin acquisitions.

The development comes amid declining share prices and slowing issuance in corporate crypto treasuries. JPMorgan highlighted that both equity and debt fundraising volumes fell last quarter, pointing to waning investor appetite.

This growing fatigue raises questions about the sustainability of the corporate bitcoin treasury model. Some firms are turning to more complex financing tools, such as bitcoin-backed loans and token-linked convertibles. However, the rising risk premium may drive investors and index providers to favor crypto companies with active operations, like exchanges and miners, over firms that primarily hold bitcoin on their balance sheets.