JPMorgan Flags S&P 500 Rejection as a Warning for Corporate Bitcoin Treasuries
11/9/2025
Strategy (MSTR) was denied entry into the S&P 500 index, despite meeting technical eligibility criteria, a decision JPMorgan (JPM) interprets as growing caution toward companies functioning as de facto bitcoin funds.
Analysts led by Nikolaos Panigirtzoglou noted that the index committee’s discretionary rejection represents a setback not only for Strategy but also for other corporate crypto treasuries leveraging balance sheets to accumulate bitcoin.
Strategy’s inclusion in other major benchmarks, including the Nasdaq 100 and MSCI indices, has quietly provided both retail and institutional investors with indirect bitcoin exposure. JPMorgan warned that the S&P 500 rejection may mark a limit to this trend and could prompt other index providers to reconsider the inclusion of bitcoin-heavy firms.
Adding pressure, Nasdaq has reportedly started requiring shareholder approval before companies can issue new stock for crypto purchases. Strategy itself recently abandoned its no-dilution pledge, signaling willingness to issue shares at lower multiples to fund further bitcoin acquisitions.
The news comes amid weakening share prices and slowing issuance among corporate crypto treasuries. JPMorgan highlighted that both equity and debt fundraising volumes fell last quarter, indicating a decline in investor appetite.
This shift raises questions about the sustainability of the corporate bitcoin treasury model. While some firms are exploring more complex financing, from bitcoin-backed loans to token-linked convertibles, rising risk premiums may drive investors and index providers to favor crypto companies with operating businesses—like exchanges and miners—over those holding primarily bitcoin on their balance sheets.
