Catenaa, Thursday, September 11, 2025- JPMorgan analysts warned that the S&P 500 committee’s decision to reject Strategy from the index despite meeting eligibility criteria marks a significant blow to crypto treasury firms.
The move highlights growing caution toward companies that hold substantial bitcoin reserves.
Strategy, the largest public crypto treasury company, has used index inclusion to channel bitcoin exposure into benchmarks like the Nasdaq 100, MSCI USA, MSCI World, and Russell 2000.
Analysts said the rejection signals that this indirect route into institutional and retail portfolios may be approaching its limits.
JPMorgan noted the decision could prompt other index providers to reassess companies that function primarily as bitcoin funds.
“Fatigue is evident in share prices and funding activity,” analysts said, pointing to declining equity issuance volumes and rising risk premia in debt markets.
The rejection adds to existing headwinds.
Nasdaq reportedly requires firms with large crypto holdings to seek shareholder approval before issuing new shares to fund purchases. Strategy recently eased a prior pledge not to issue shares below a 2.5 multiple, raising further market scrutiny.
While some corporate treasuries have explored bitcoin-backed loans, token-linked convertibles, and structured payouts, JPMorgan said investor skepticism is increasing.
Analysts suggested capital may shift toward crypto companies with active operations, such as exchanges and miners, rather than balance-sheet-driven treasury firms.
