Bitcoin News Today: Bitcoin's Treasury King Loses S&P 500 Bid, Rivals Gain Entry

The recent S&P 500 index rebalance on September 5 failed to include MicroStrategy (Nasdaq: MSTR), a move that disappointed the cryptocurrency community and raised questions about the firm's market recognition. Led by co-founder and executive chairman Michael Saylor, MicroStrategy has adopted a bold strategy of holding a substantial Bitcoin (BTC) treasury. The company's holdings include 636,505 BTC, valued at approximately $70 billion as of the time of the rebalance [1]. Despite analyst forecasts and expectations, particularly from Bitcoin investor Lark Davis who had predicted MicroStrategy's inclusion earlier in the week, the firm remained outside the index [1].

Robinhood Markets (Nasdaq: HOOD), a competing cryptocurrency-focused firm, successfully joined the S&P 500 index in the same rebalance, marking it as the third crypto-related company to do so [1]. This inclusion followed the entry of Coinbase (Nasdaq: COIN) in May and Block, Inc. (NYSE: XYZ) in July [1]. Robinhood's inclusion brought mixed market reactions: the stock closed at $101.25, down 1.61% for the day, but rose 7% in after-hours trading to $108.40 [1]. Analysts noted that the typical market boost upon inclusion in a major index like the S&P 500 is driven by fund managers' need to adjust their portfolios accordingly [3].

The exclusion of MicroStrategy from the S&P 500 is expected to have a mixed impact on the company's stock performance. While MSTR's stock closed at $335.87 with a 2.53% gain for the day, it dipped 2.64% to $326.99 in after-hours trading [1]. Wall Street analysts, however, remain optimistic about MSTR's future. Mizuho Securities raised its price target for the stock from $536 to $586, while Canaccord Genuity reiterated its Buy rating with a $464 price target [2]. This optimism is fueled by the company's strong second-quarter 2025 earnings report, which delivered $114.49 million in revenue and $32.60 in earnings per share—both figures exceeding Wall Street estimates [2].

The inclusion of Robinhood and AppLovin Corp. (Nasdaq: APP) in the S&P 500 reflects broader market trends favoring technology and digital finance sectors. AppLovin, which provides advertising technology for mobile apps and games, is replacing MarketAxess Holdings in the index, while Robinhood is replacing Caesars Entertainment [3]. Both companies went public on Nasdaq in 2021, with AppLovin's stock gaining 51% in 2025 after rising nearly 700% in 2024 [3]. The changes will take effect before the start of trading on September 22 [3].

MicroStrategy's continued investment in Bitcoin remains a significant strategic choice that differentiates it from its peers. While other S&P 500 constituents like Coinbase and Block, Inc. have focused on broader fintech operations, MicroStrategy has pursued a more concentrated bet on Bitcoin as a treasury asset. The market's mixed reaction to MicroStrategy's exclusion from the S&P 500 highlights the growing but still uncertain role of cryptocurrency firms in traditional equity markets [1]. Despite the setback, the firm's recent financial performance and Wall Street's bullish stance suggest that its long-term strategy remains in line with broader market expectations [2].

Source:

[1] The Street - Hopes Dashed as MicroStrategy Snubbed in S&P 500 Rebalance (https://www.thestreet.com/crypto/markets/hopes-dashed-as-microstrategy-snubbed-in-s-p-500-rebalance)

[2] Yahoo Finance - Wall Street is Bullish on Strategy Inc (MSTR) (https://finance.yahoo.com/news/wall-street-bullish-strategy-inc-161050539.html)

[3] CNBC - AppLovin and Robinhood added to S&P 500 (https://www.cnbc.com/2025/09/05/applovin-robinhood-sp-500.html)