JPMorgan Chase: Strategy is "neglected" by the S&P 500 Index, sounding the alarm for corporate Bitcoin reserves

PANews reported on September 11 that although Strategy (MSTR) meets technical qualifications, its application to join the S&P 500 has been rejected. JPMorgan believes this shows that the market is becoming increasingly cautious about companies acting as Bitcoin funds. The decision not only thwarted Strategy, but also hit the corporate crypto reserve model that emulated its balance sheet to accumulate bitcoin. JPMorgan noted that the inclusion of Strategy in other major benchmark indices such as the Nasdaq 100 and MSCI has quietly opened the backdoor for Bitcoin to enter retail and institutional portfolios, but the S&P 500 decision could mark the limit of this trend and could prompt other index providers to reconsider the inclusion of existing Bitcoin-weighted companies. JPMorgan Chase pointed out that Nasdaq's request for companies to issue new shares to purchase cryptocurrencies requires shareholder approval, which has exacerbated the pressure. Strategy gave up its promise not to dilute equity and is willing to issue shares and buy coins with low price-to-earnings ratio. Currently, corporate crypto reserves are facing weak stock prices, slowing issuance difficulties, and weak investor interest has raised questions about the sustainability of their model, and investors and index providers may prefer crypto companies with actual operating businesses.