Strategy’s Decision to Sidestep the S&P 500 Raises Red Flags for Corporate Bitcoin, JPMorgan Notes.

JPMorgan Flags S&P 500 Rejection as Warning for Corporate Bitcoin Treasuries
11/9/2025

Strategy (MSTR) was rejected from the S&P 500 index despite meeting technical eligibility, a move JPMorgan (JPM) views as a signal of rising caution toward companies acting as bitcoin-focused funds.

Analysts led by Nikolaos Panigirtzoglou said the index committee’s discretionary decision is a setback not only for Strategy, but also for other corporate crypto treasuries leveraging balance sheets to accumulate bitcoin.

Strategy’s inclusion in other major benchmarks, from the Nasdaq 100 to MSCI indices, has quietly provided indirect bitcoin exposure to retail and institutional investors. JPMorgan warned that the S&P 500 rejection may indicate a limit to this trend and could prompt other index providers to reconsider bitcoin-heavy companies.

Nasdaq has reportedly begun requiring shareholder approval before companies can issue new stock to buy crypto. Strategy recently abandoned its no-dilution pledge, signaling a readiness to issue shares at lower multiples to continue funding bitcoin purchases.

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

This trend raises questions about the sustainability of the corporate bitcoin-treasury model. While some firms are turning to more complex financing, including bitcoin-backed loans and token-linked convertibles, rising risk premiums could drive investors and index providers to favor crypto companies with operating businesses, such as exchanges and miners, over those holding primarily bitcoin.