TechFlow news, September 11 — According to The Block, the S&P 500 index committee last week rejected adding Strategy (formerly MicroStrategy) to the index despite the company technically meeting eligibility criteria. JPMorgan analysts said the decision is a blow not only to Strategy, the largest public crypto treasury firm, but also to the surge of similar companies in recent months.
Analysts warned that other index providers that have included Strategy or similar crypto treasury firms may reconsider their approach. Meanwhile, crypto treasury firms face multiple headwinds: rising investor caution over crowded trades and weak performance, sharply reduced equity issuance, and rising risk premiums on debt issuance.
JPMorgan expects capital may shift toward crypto companies with actual operating businesses, such as exchanges and miners, rather than treasury-type firms relying solely on their balance sheets.
