Yahoo Finance·2025-09-11 20:01Core Insights - JPMorgan analysts have raised concerns about investing in companies that primarily function as Bitcoin funds rather than traditional operating businesses, highlighting potential risks in the crypto treasury sector [1][3] - MicroStrategy's recent rejection from the S&P 500 Index is seen as a significant setback for both the company and other corporate crypto treasury firms [1][4] Investment Risks - The sustainability of the corporate model for crypto treasury firms is increasingly questioned, with a growing correlation between Bitcoin price movements and the volatility of crypto-related stocks [3][4] - Increased scrutiny from traditional financial institutions is evident, with Nasdaq implementing stricter supervision on firms transitioning to Bitcoin proxies [4] Market Trends - Companies with operational business models, such as exchanges or miners, are preferred by JPMorgan over pure crypto treasury plays, indicating a shift in investor sentiment towards more sustainable business practices [5] - Notable gains have been observed in companies like Galaxy Digital and Bitfarms, driven by strategic moves into AI and high-performance computing, contrasting with declines in pure BTC treasury vehicles [6]