JPMorgan: S&P 500's refusal to include Strategy is a blow to cryptocurrency treasury

JPMorgan analysts say last week's rejection by the S&P 500 index committee of Strategy (formerly MicroStrategy) to include it, despite the company technically meeting the inclusion criteria, is a blow to cryptocurrency treasuries. JPMorgan analysts wrote in a note Wednesday that the rejection is not only a setback for Strategy, but also a blow to a rapidly growing list of similar companies in recent months. The bank's analysts, led by Managing Director Nikolaos Panigirtzoglou, said the index committee has discretion in its stock selection process, and the decision reflects caution toward companies whose balance sheets have been transformed into large Bitcoin holdings. The analysts noted that the S&P 500 exclusion suggests this indirect channel into institutional and retail portfolios may be reaching its limits. A greater risk, they added, is that other index providers that have already included Strategy or other crypto treasury companies may reconsider their approach. (The Block)