JPMorgan "Strategy's S&P500 inclusion failure hits crypto treasury companies"

Suehyeon Lee

Summary

JPMorgan said the S&P500 index committee's rejection of Strategy's inclusion could deal a blow to crypto treasury companies broadly.
JPMorgan's report said this decision is a warning signal to the recently surged bitcoin treasury companies.
The report analyzed that Strategy's stock price had benefited from inclusion in major indices and served as an indirect investment channel for Bitcoin, but the S&P500's rejection suggests the limits of such investment routes.

The S&P500 index committee's rejection of Strategy's inclusion could deal a blow to crypto (cryptocurrency) treasury-focused financial strategy firms, analysts say.

On the 11th (local time), The Block reported that JPMorgan said in a report the previous day, "The S&P500's rejection of Strategy's inclusion is not simply a problem for Strategy but a warning signal for the recently surged bitcoin treasury companies (crypto treasuries) as a whole."

The report added, "Strategy's stock price has served as an indirect investment channel for Bitcoin by benefiting from inclusion in major indices such as the Nasdaq 100, MSCI USA, MSCI World, and Russell 2000. However, the S&P500's rejection suggests that such indirect investment routes have reached their limits."

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