JPMorgan: Strategy’s Rejection from S&P 500 Is a Warning for Corporate Bitcoin Treasuries

JPMorgan has raised red flags after Strategy (MSTR) was denied entry into the prestigious S&P 500 index. Despite meeting all technical eligibility requirements, the index committee chose to reject the company’s application—a move Wall Street analysts see as a sign of growing caution toward firms that function as “de facto Bitcoin funds.”

A Warning for Bitcoin Corporations According to a report led by Nikolaos Panigirtzoglou, this is not just an isolated incident. Strategy has become a symbol of companies using their balance sheets to massively accumulate Bitcoin, effectively turning into corporate crypto treasuries. Its inclusion in indices such as the Nasdaq 100 and MSCI had so far indirectly opened the door for Bitcoin exposure in both retail and institutional portfolios. But the S&P 500’s decision may halt this trend—and could push other index providers to reconsider similar companies.

Nasdaq and Other Indexes Tighten Rules JPMorgan’s report also highlights that Nasdaq is raising the bar: it now reportedly requires shareholder approval if a company wants to issue new shares solely to purchase crypto. Strategy recently abandoned its commitment not to dilute shares, signaling its willingness to issue more stock to keep funding Bitcoin purchases—currently trading around $114,120.

Investor Fatigue and Risk Premiums JPMorgan further points to a broader trend: in the last quarter, corporate issuance of both equities and bonds has declined, underscoring weakening investor appetite. Companies with Bitcoin-heavy treasuries are thus being pushed toward more complex financing methods—from Bitcoin-backed loans to token-linked convertible bonds. Analysts warn that a growing risk premium could lead investors and index providers to favor companies with real operational activities—such as exchanges or miners—over purely “Bitcoin treasury” firms.

📌 The takeaway is clear: Strategy’s rejection from the S&P 500 is not just a bureaucratic matter. It’s a pivotal moment that could reshape the future of corporate Bitcoin treasuries and their place in global indices.

#JPMorgan , #bitcoin , #S&P500 , #CryptoNews , #WallStreet

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