JPMorgan: S&P 500 Refuses to Include Strategy, Sounding Alarm for Crypto Treasury Companies

The S&P 500 Index Committee recently rejected the inclusion application of Strategy (formerly MicroStrategy), despite the company meeting the technical qualification requirements. This decision not only deals a blow to Strategy but is also viewed by JPMorgan analysts as a warning signal for the entire "crypto treasury" industry. It indicates that index providers are taking an increasingly cautious approach towards companies that are transforming their primary business into Bitcoin investment vehicles, which may be limiting the wider acceptance of crypto assets through traditional financial channels.

S&P 500's "Discretion"

The S&P 500 Index Committee exercised discretion in its selection process, rejecting Strategy's inclusion application. This decision comes at a time when a large number of similar companies are flooding the market.