Saylor’s Strategy rebuffed as S&P 500 sets ‘higher bar’ for crypto firms

Core Insights - The S&P 500's rejection of MicroStrategy's inclusion signals a reluctance to accept companies that operate as "effectively Bitcoin funds" [1][2] - This denial is detrimental not only to MicroStrategy but also to other corporate crypto treasuries, indicating potential limits on Bitcoin's integration into investor portfolios [2] Company Performance - MicroStrategy was profitable for four consecutive quarters and met market capitalization and liquidity requirements, yet the source of its capital raised concerns for the S&P committee [4] - A significant portion of MicroStrategy's recent profits stemmed from unrealized gains on digital asset holdings, which may have led to qualitative scrutiny [5] Industry Trends - One-third of the 172 publicly traded Bitcoin treasuries are trading below their premiums, highlighting challenges in the sector [3] - The Nasdaq has begun requiring companies with crypto assets to obtain shareholder approval for new share issuances, impacting business models reliant on dilution [7] - MicroStrategy's recent actions, including dropping its no dilution promise, reflect a struggle to maintain its Bitcoin acquisition strategy [7]