Key Highlights
- JPMorgan reacted to the S&P 500 index committee’s decision to exclude Strategy
- The financial giant called it a major warning shot against firms that act as Bitcoin proxies, not operating businesses
- The exclusion may limit access to passive investment flows
The leading financial giant, JPMorgan Chase, has shared their view on the recent S&P 500 committee’s decision, saying their decision not to include it in the S&P 500 index is a major setback for corporate crypto treasuries.
JUST IN: 🇺🇸 JPMorgan says S&P 500 committee’s decision to block MicroStrategy’s inclusion is major setback for corporate crypto treasuries. pic.twitter.com/ejDdK5srjj
— Whale Insider (@WhaleInsider) September 11, 2025
This statement comes after the Strategy was denied entry into the index of the 500 largest U.S. companies, even after meeting technical criteria. According to JPMorgan, this denial is an early sign for Bitcoin treasuries that their entry into Wall Street might be taken cautiously.
Why JPMorgan Calls it a Major Setback
JPMorgan’s analysts are calling this move a major setback not just for Strategy but for the entire corporate crypto treasury model. This shows deep-seated caution about companies that function as a de facto Bitcoin investment vehicle.
The announcement came on September 5, with the committee selecting companies like Robinhood, AppLovin, and Emcor Group over Strategy.
JPMorgan’s managing director, Nikolaos Panigirtzoglou, and his team described this as a deliberate signal from the establishment financial world.
It shows a clear preference for traditional operating businesses over firms whose value is overwhelmingly related to cryptocurrency holdings.
Strategy’s confidence in BTC is unshakable
Strategy, which holds approximately 638,460 Bitcoin, worth around $73.17 billion, has built its entire identity around being a Bitcoin-centric company. While new accounting standards allowed it to report a record $10 billion in net income last quarter by including unrealized Bitcoin gains, this was not enough to convince the index gatekeepers.
Inclusion in major indices like the S&P 500 provides companies with access to billions of dollars in passive investment from funds that track these benchmarks.
For Strategy, which is already part of other indices like the Nasdaq 100, this rejection could raise its cost of capital and reduce the stability of its stock. The market reacted immediately, with Strategy’s shares falling nearly 3% on the news.
JPMorgan’s analysis suggests that this is more than just one company’s problem. It is a warning shot to the entire sector of firms adopting similar crypto-heavy treasury strategies. However, the company also believes that cryptocurrency’s institutional adoption is still in its infancy.
Other index providers may now follow suit, reevaluating whether companies that primarily serve as Bitcoin proxies belong in their mainstream benchmarks. This could disrupt a key channel that has allowed institutional investors to gain indirect exposure to Bitcoin through the traditional stock market.
The rejection shows a growing investor fatigue with the crypto treasury model. JPMorgan points to declining equity issuance volumes along with rising risk premiums in debt markets for these firms.
Nasdaq has already introduced new requirements, forcing companies with significant crypto holdings to get shareholder approval before issuing new shares to fund further purchases.
Strategy itself recently abandoned a crucial commitment not to issue shares below a certain valuation multiple. It comes from the rising financial pressures it faces.
While JPMorgan has expressed general optimism about digital assets into 2025, it remains particularly skeptical of treasury-based models compared to operational crypto businesses like exchanges and mining companies. The bank has previously doubted initiatives like a U.S. strategic crypto reserve by pointing out the high volatility concerns.
Bitcoin’s Growing Institutional Adoption
Since Donald Trump took office in January 2025, institutional adoption of Bitcoin has grown dramatically. This rapid adoption comes from a series of supportive policies and executive actions from his administration.
The President’s clear support for digital assets through his own ventures, like World Liberty Financial. This also includes the creation of the U.S. Strategic Bitcoin Reserve. This sent a powerful signal to corporations and financial institutions, encouraging them to incorporate Bitcoin into their balance sheets and investment strategies.
This shift toward mainstream acceptance has been further propelled by the success of spot Bitcoin ETFs, approved in early 2024, which have attracted massive institutional inflows and led firms to accumulate more than 3.09 million BTC.
