JPMorgan Warns S&P 500 Rejection Signals Caution 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 acting as de facto bitcoin funds.
Analysts led by Nikolaos Panigirtzoglou said the index committee’s discretionary rejection is a setback not only for Strategy, but also for other corporate crypto treasuries using balance sheets to accumulate bitcoin.
Strategy’s presence in other major benchmarks, including the Nasdaq 100 and MSCI indices, has quietly given both retail and institutional investors indirect exposure to bitcoin. JPMorgan warned that the S&P 500 decision may mark a limit to this trend and could lead other index providers to reconsider their inclusion of bitcoin-heavy firms.
Adding to the 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 a willingness to issue shares at lower multiples to continue funding bitcoin acquisitions.
The news comes as corporate crypto treasuries face declining share prices and slower issuance. JPMorgan noted that both equity and debt fundraising volumes fell last quarter, suggesting investor appetite is waning.
This growing fatigue raises questions about the sustainability of the corporate bitcoin-treasury model. While some firms have turned to more complex financing—ranging from bitcoin-backed loans to token-linked convertibles—the rising risk premium could drive investors and index providers to favor crypto companies with active operations, such as exchanges and miners, over firms primarily holding bitcoin.
