"Strategy again excluded from S&P500"

Strategy (formerly MicroStrategy) was again found to be excluded from inclusion in the U.S. Standard & Poor's (S&P) 500 index.

On the 25th, according to BeInCrypto, the S&P Dow Jones Indices committee said that SanDisk will join the S&P500 on the 28th, replacing Interpublic Group. Immediately after the announcement, SanDisk's stock jumped more than 9% in after-hours trading.

By contrast, Strategy failed to meet the requirements for S&P500 inclusion and was excluded again. Strategy, which holds 648,008 bitcoin (BTC) with an estimated value of about $72.3 billion and is the world's largest 'bitcoin treasury company', was reportedly judged by the index committee to have bitcoin volatility directly reflected in corporate performance as the greatest risk.

Strategy reported net income of about $3.8 billion in the third quarter, but quarterly results have swung widely along with bitcoin price fluctuations. It also failed to meet the 'four consecutive quarters of profit' requirement needed for S&P500 inclusion. In fact, it recorded about a $4.2 billion loss in Q1 2024, leaving its performance stability unestablished.

Meanwhile, Strategy's stock is down about 35% from its July peak. News that MSCI is considering removing Strategy from U.S. and global indices is adding to investor concern. The market has commented that "a bitcoin-centric business structure is, in the long term, at odds with traditional index calculation methods."