Analysis: The refusal of the S&P 500 to include Strategy is a warning signal for corporate Bitcoin holding strategies.

On September 11, despite Strategy (MSTR) meeting the technical inclusion criteria for the S&P 500 index, its application to join the index was rejected. JPMorgan believes this indicates a growing caution among investors towards companies that effectively act as Bitcoin funds. The analyst team led by Nikolaos Panigirtzoglou stated that the index committee's discretionary decision is not only a setback for MicroStrategy but also impacts the increasing number of corporate Crypto Assets holders that have been mimicking its strategy of accumulating Bitcoin through balance sheets. The report noted that Strategy has been included in other major benchmark indices such as the Nasdaq 100 and MSCI indices, quietly opening a backdoor for Bitcoin to enter retail and institutional portfolios. However, the Wall Street bank warned that the S&P 500's decision may signify the limits of this trend and could prompt other index providers to reconsider whether to continue including companies with significant Bitcoin holdings. The report also mentioned that Nasdaq has reportedly begun requiring companies to obtain shareholder approval before issuing new shares to purchase Crypto Assets, adding additional pressure. Strategy recently abandoned its commitment to non-dilutive equity, indicating a willingness to issue shares at lower multiples to continue funding Bitcoin purchases. Meanwhile, the stock performance of corporate Crypto Assets holders has been weak, and the pace of issuance is slowing down. JPMorgan pointed out that equity and debt financing volumes both declined last quarter, indicating waning investor interest. This weakness has raised questions about the sustainability of corporate Bitcoin holding models. The report added that although some companies are turning to more complex financing methods, such as Bitcoin-backed loans or Convertible Bonds linked to Tokens, the rising risk premium may drive investors and index providers to favor crypto companies with operational businesses (such as exchanges and miners) over pure Bitcoin holding entities.