Analysis: S&P 500 rejects Strategy's inclusion as a warning sign for corporate Bitcoin holding strategies

BlockBeats News, on September 11, although Strategy (MSTR) met the S&P 500's technical inclusion criteria, its application to join the index was rejected. JPMorgan believes this shows that people are increasingly cautious about companies that actually act as Bitcoin funds. The team of analysts led by Nikolaos Panigirtzoglou said this discretionary decision by the Index Committee is not only a setback for MicroStrategy, but also an impact on the growing number of corporate cryptocurrency holders who mimic their strategy of accumulating Bitcoin through their balance sheets. The report notes that Strategy has been included in other major benchmark indexes, such as the Nasdaq 100 and MSCI indexes, which quietly opens the backdoor for Bitcoin to enter retail and institutional portfolios. However, the Wall Street bank warned that the S&P 500 decision could mark the limit of the trend and could prompt other index providers to reconsider whether to continue to include companies holding large amounts of bitcoin. The report also mentioned that Nasdaq has allegedly started requiring companies to obtain shareholder approval before issuing new shares to buy cryptocurrencies, adding additional pressure. Strategy recently abandoned its commitment to not dilute equity, showing its willingness to issue shares at lower multiples to continue funding Bitcoin purchases. Meanwhile, the share prices of corporate cryptocurrency holders have performed weakly and issuance is slowing. JPMorgan noted that both equity and debt financing fell in the last quarter, indicating that investor interest is weakening. This fatigue has raised questions about the sustainability of corporate Bitcoin holding models. The report added that while some companies turn to more complex financing methods, such as Bitcoin-backed loans or token-pegged convertible bonds, rising risk premiums may drive investors and index providers to prefer crypto companies with operating businesses such as exchanges and miners over purely Bitcoin-held entities.