The S&P 500 index committee's decision to reject the bid from Strategy for inclusion has sparked significant reactions in the financial and crypto environments. Despite seemingly meeting the necessary criteria, the company has been left out of the index.
Rejection of Strategy
Last week, the S&P 500 index committee declined the application from Strategy, the largest corporate holder of Bitcoin. Instead, Robinhood was included in the index, which surprised many observers.
Analyst Opinions
JPMorgan analysts, led by Nikolaos Panigirtzoglou, characterized this decision as a setback not just for Strategy but for other firms that have recently adopted similar crypto treasury models. They noted that while eligibility criteria were formally met, the committee's choices highlight unease towards companies tied closely to cryptocurrencies.
Company Strategy Moving Forward
Despite these setbacks, Strategy continues to expand its Bitcoin holdings. On September 8, the company disclosed a purchase of 1,955 BTC valued at about $217.4 million, bringing its total to 638,460 BTC worth approximately $47.17 billion. Michael Saylor, the executive chairman of Strategy, stated in an interview that the company does not expect immediate acceptance but remains hopeful for future inclusion.
The rejection of Strategy from the S&P 500 highlights potential constraints for companies utilizing the crypto treasury model. This situation could present further challenges, especially amid increasing investor skepticism.
