Corporate Bitcoin Treasuries Could Be at Risk, Says JPMorgan, After Strategy Skips S&P 500.

JPMorgan Flags S&P 500 Rejection as Warning for Corporate Bitcoin Treasuries
11/9/2025

Strategy (MSTR) was denied entry into the S&P 500 index, despite meeting technical eligibility criteria, a development JPMorgan (JPM) sees as a sign of rising caution toward companies that effectively operate as bitcoin funds.

Analysts led by Nikolaos Panigirtzoglou noted that the index committee’s discretionary decision is a setback not just for Strategy, but for other corporate crypto treasuries following a similar strategy of using balance sheets to accumulate bitcoin.

While Strategy’s inclusion in benchmarks such as the Nasdaq 100 and MSCI indices has quietly provided bitcoin exposure to both retail and institutional investors, JPMorgan cautions that the S&P 500 rejection may signal a ceiling for this trend. The decision could also prompt other index providers to reconsider their inclusion of bitcoin-heavy firms.

The pressure on corporate bitcoin holders is mounting. 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 fund further bitcoin acquisitions.

The news arrives amid weakening share prices and declining issuance in corporate crypto treasuries. JPMorgan highlighted that both equity and debt fundraising volumes fell last quarter, indicating waning investor appetite.

This trend raises questions about the long-term sustainability of the corporate bitcoin treasury model. While some companies are turning to more complex financing tools—ranging from bitcoin-backed loans to token-linked convertibles—the rising risk premium may encourage investors and index providers to favor crypto firms with operating businesses, such as exchanges and miners, over those holding primarily bitcoin on their balance sheets.