Strategy Rejected from S&P 500 Again! JPMorgan and Bloomberg Cast Doubt on the Crypto Treasury Boom

TradingKey – Strategy’s exclusion from the S&P 500 reignites bearish sentiment among institutions toward the crypto treasury model.

On Wednesday (ET), a team of analysts led by JPMorgan Managing Director Nikolaos Panigirtzoglou published a report stating, “Strategy (MSTR) being denied entry into the S&P 500 is not only a setback for the company itself, but also for the wave of similar firms that have emerged in recent months.”

Last Friday, Robinhood (HOOD) was successfully added to the S&P 500, while Strategy was once again left out — sending its stock lower. As of press time, despite Bitcoin (BTC) rebounding to around $114,000, Strategy’s share price remains weak.

Strategy Stock Price Chart – Source: TradingView

Recently, Bloomberg reported that both Strategy and its Japanese counterpart Metaplanet saw their stock prices surge over the past year, only to decline in recent weeks. This suggests that even industry leaders are not immune to shifts in market sentiment. Bloomberg also emphasized that the crypto treasury model is transitioning from hype to skepticism, with operational challenges mounting.

There have also been reports that Nasdaq plans to tighten oversight of crypto treasury firms, potentially requiring shareholder approval for any new stock issuance used to purchase Bitcoin. 

In response, Strategy stated that Nasdaq’s new requirements will not affect its operations and that it will continue aggressively acquiring Bitcoin. In fact, this regulatory tightening may cause short-term disruption but could ultimately support the long-term sustainability of treasury-based crypto firms.