S&P 500’s snub of ‘Strategy’ (ex-MicroStrategy) may chill corporate crypto buyouts, JPMorgan says

By Cryptocaster Market Desk

Index-committee discretion just signaled a ceiling on “bitcoin-by-proxy” strategies. Other index providers could follow.

The S&P 500 index committee’s decision to leave Strategy Inc.—the company formerly known as MicroStrategy—out of its September rebalancing may be a turning point for corporations trying to bolt crypto exposure onto their equity stories, according to JPMorgan. The bank argues the move undercuts the recent wave of “crypto-acquisition” and treasury-accumulation plays that pitch themselves as back-door bitcoin access for mainstream investors.

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What happened. Despite checking the usual boxes—size, liquidity, profitability—Strategy was not selected for inclusion. The committee instead added AppLovin, Robinhood Markets, and Emcor Group to the S&P 500. Hopes for large, automatic index-fund inflows faded as a result.

Why it matters. Strategy has effectively become the market’s incumbent “corporate bitcoin vehicle,” with valuation swings dominated by BTC rather than by its legacy software revenues. While S&P rules explicitly exclude ETFs and closed-end funds, the committee can exercise discretion on operating companies. Reading between the lines, JPMorgan suggests the committee was unwilling to include a firm that behaves like a bitcoin investment vehicle in practice, even if it qualifies on paper.

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The chill for copycats. Over the past two years a cohort of small- and mid-cap firms has tried to engineer equity reratings via crypto—buying digital assets outright, acquiring crypto businesses, or rebranding to spotlight on-balance-sheet tokens. The allure wasn’t just price action; it was the index-access carrot that could unlock passive demand once a company grew big enough. S&P’s snub dims that carrot. If you can’t bank on index inclusion, the incentive to pursue “crypto-by-acquisition” or heavy bitcoin treasuries shrinks, especially for boards wary of volatility and governance blowback.

The policy signal. JPMorgan’s read is that other index families could take a similar stance. Exchanges and listing authorities have already tightened processes around significant crypto purchases and business pivots. The broader message to corporates: if your stock’s behavior is driven primarily by a single speculative asset, index access is not guaranteed—even at large market caps.

Strategy’s pivot and premium. Strategy’s formal rebrand this year cemented its identity as a bitcoin-treasury company, and the stock’s premium to underlying BTC has compressed as arbitrageurs and skeptics question how much “extra” they should pay for proxy exposure. Without the passive-inflow narrative of S&P 500 membership, that premium has less to lean on.

What to watch next.

1. Future S&P rebalances. Does Strategy remain sidelined, or does the committee eventually relent if fundamentals broaden?
2. Policy codification. Do S&P, Nasdaq, or other stewards publish sharper guidance around crypto-driven business models?
3. Boardroom calculus. Expect fewer “buy bitcoin, boost multiple” pitches—and more focus on cash-flow resilience, disclosure, and risk controls if crypto remains on the balance sheet.
4. Proxy alternatives. Investors who still want BTC beta may continue migrating toward spot ETFs and regulated vehicles rather than operating-company proxies.

Bottom line. If the S&P 500 won’t bless a bitcoin-centric operating company today, would-be imitators should reconsider index-access assumptions. Without the prospect of passive demand, the economics of corporate crypto land-grabs look less compelling—and the “crypto-acquisition frenzy” may finally cool.

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