JPMorgan Calls S&P 500’s Rejection of Strategy a “Blow to Crypto Treasuries”

Analysts warned of significant risks.

The S&P 500 committee’s decision to deny Strategy’s inclusion in the index “dealt a significant blow to the entire corporate crypto treasury industry,” according to JPMorgan analysts, as reported by The Block.

They noted that this move signals a cautious approach towards companies that have adopted a cryptocurrency accumulation strategy.

Strategy meets all S&P 500 requirements: U.S. listing, market capitalization above $8.2 billion, daily trading volumes exceeding 250,000 shares, and positive earnings for the last quarter and the previous 12 months. Nevertheless, on September 5, the “secret” committee rejected the company’s application without specifying reasons.

Bloomberg analyst Eric Balchunas suggested several reasons might have influenced the rejection, including Strategy’s high price volatility and risks to its business model due to heavy reliance on Bitcoin.

Why wasn’t $MSTR allowed into the S&P 500 Index despite meeting all the criteria? Because the ‘Committee’ said no. You have to realize SPX is essentially an active fund run by a secret committee. We intv’d the dude who used to run this committee on Trillions. Check it out. pic.twitter.com/w334JrX9VO

— Eric Balchunas (@EricBalchunas) September 5, 2025

He added that inclusion in the S&P could have attracted investment volumes sufficient to purchase 250,000 BTC.

Risks

JPMorgan experts emphasized that the rejection harmed not only Strategy but also all firms following the same approach to digital assets. Analysts warned that other index providers like MSCI and Russell might also reconsider their approaches to companies with corporate crypto treasuries.

The situation is exacerbated by Nasdaq’s tightening rules. According to The Information, the exchange will require companies with large crypto holdings to obtain shareholder approval before issuing new shares to acquire digital assets. Non-compliance could lead to delisting.

JPMorgan added that corporate crypto treasuries are already under pressure. They noted signs of “fatigue”—both in stock dynamics and in the slowdown of accumulation rates. In recent months, the volume of share issuance has decreased compared to previous quarters.

In attempts to maintain their business model, some are “experimenting with complex financial instruments.” Experts included Bitcoin-backed loans, token-linked convertible bonds, and structured payouts among these.

Nevertheless, skepticism continues to grow. As a result, capital may shift towards crypto companies with real operational activities—such as exchanges and mining firms—rather than firms whose value depends solely on digital asset investments, JPMorgan warned.

Earlier, Capriole founder Charles Edwards, amid the slowdown in corporate Bitcoin purchases, warned of the growing risk of a massive cryptocurrency sell-off.

Galaxy Digital compared the trend of forming companies with reserves in digital gold to the investment trust bubble of the 1920s in the United States.