Shares of Strategy (NASDAQ:MSTR) slid nearly 2% Monday after the company was passed over for inclusion in the S&P 500. The Bitcoin-treasury pioneer (formerly known as MicroStrategy) had been widely viewed as a front-runner for inclusion, having met the index’s eligibility requirements and coming off one of the strongest quarters in its history.
Instead, S&P Dow Jones Indices announced that AppLovin (NASDAQ: APP), Robinhood Markets (NASDAQ: HOOD), and Emcor Group (NYSE: EME) will join the S&P 500 in the upcoming quarterly rebalance
The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the United States.
Eligibility Alone Wasn’t Enough
Michael Saylor’s Strategy already delivered a standout Q2 2025, reporting $10 billion in net income, largely fueled by a $14 billion unrealized gain on its 638,460 Bitcoin holdings. Surprisingly, the exclusion came despite the company meeting all S&P 500 criteria, which include:
- Market value of about $95 billion
- Ample liquidity and float
- Newly positive Generally Accepted Accounting Principles (GAAP) earnings
While no explanation was given for the exclusion of Strategy, analysts point to three likely factors:
- Heavy reliance on Bitcoin, with shares behaving more like a crypto proxy than a diversified company.
- Only its first full year of GAAP profitability, aided by new accounting rules.
- The committee’s cautious history, such as delaying Tesla’s inclusion despite early eligibility.
Benchmark’s Mark Palmer said the exclusion reflected the committee’s cautious stance rather than Strategy’s balance sheet, adding that the company remains a strong contender for future inclusion if profits hold.
The debate intensified as Jeff Walton of Strive Funds noted that Strategy’s Q2 profits were 6.6 times higher than the three added firms combined and 2.5 times greater over the past year, making its exclusion difficult to justify.
Meanwhile, Robinhood earned a surprise nod, replacing Caesars Entertainment (Nasdaq: CZR) on September 22, and now sits alongside Coinbase (COIN) and Block (SQ) as one of the few crypto-related companies in the index.
Strategy’s Michael Saylor Didn’t Expect Entry
Following its S&P 500 exclusion, Michael Saylor, Executive Chairman of Strategy Inc., told CNBC’s Squawk Box (3:48–4:45) the company “didn’t expect entry yet” and saw no bias against Bitcoin‑holding firms. He also shared on X a chart showing MSTR outperforming both the S&P 500 (SPY) and Bitcoin despite the setback.
In after-hours trading, MSTR fell 1.78% to $329.90, with an intraday high of $333.00 and low of $321.81, currently trading at $329.90.
Meanwhile Robinhood Markets Inc. (HOOD) surged 15.8% to $117.28, with a high of $117.48 and low of $108.01, currently holding at $117.28.
