Strategy Excluded from S&P 500 Due to Bitcoin Holdings

Strategy, formerly MicroStrategy, headquartered in the United States and led by Michael Saylor, was not included in the S&P 500 index during the recent September 2025 rebalancing due to its substantial Bitcoin holdings.

The exclusion of Strategy from the S&P 500 highlights index committee concerns over the incorporation of crypto-heavy companies, despite operational profitability. This move may influence how similar firms are evaluated in future inclusion assessments.

Strategy met all technical eligibility requirements for S&P 500 inclusion but was excluded due to its substantial Bitcoin holdings. Michael Saylor leads the company, which has grown its market capitalization above $90 billion and holds over 638,000 BTC.

The exclusion impacted MSTR stock, which dropped by approximately 2% post-announcement. Analysts like James Seyffart noted committee concerns over crypto exposure:

“The index committee has full discretion to add and remove names as they see fit.” – James Seyffart, Analyst, Bloomberg ETF

Community sentiment showed frustration, especially given Strategy’s aggressive Bitcoin growth strategy.

The S&P 500’s decision underscores ongoing skepticism from traditional finance sectors towards heavy crypto exposure. No regulatory pronouncements directly relate, but broader SEC scrutiny of crypto assets persists, which could affect future corporate crypto strategies.

The historical trend shows exclusions for firms with crypto strategies, seeing preferences for diversified tech companies in the S&P 500. This decision may prompt Strategy and similar firms to reconsider asset diversification amidst continuous market evaluations. Strategy’s significant Bitcoin exposure serves as a test case in the market balancing diversified assets and specialized holdings in evaluating investment risk and market influence.