S&P 500 Favors Robinhood Over Strategy Amid Crypto Debate

The S&P 500 index rebalance scheduled for September 2025 saw the unexpected omission of Strategy (MSTR), despite the company meeting all the necessary criteria for inclusion. The stock declined nearly 3% after hours, reversing its gains from Friday. The decision came as a surprise to many market observers, especially given that Strategy had posted one of its strongest financial quarters on record, including $14 billion in operating income and a 70% rise in subscription services revenue [1].

In contrast, Robinhood (HOOD) was added to the S&P 500 index, marking a significant milestone for the digital trading platform. The stock surged 7% in after-market trading following the announcement. This addition brings the total number of crypto-related firms in the index to three, joining Coinbase (COIN) and Block (XYZ). The decision to include Robinhood may reflect the index’s broader focus on emerging trends in the financial sector, particularly in digital trading and fintech innovation [1].

The exclusion of Strategy from the index sparked speculation about market dynamics and the criteria used by S&P Dow Jones Indices for inclusion. While Strategy has been a major holder of Bitcoin and has seen substantial gains from its digital assets, the decision appears to have been based on standard inclusion factors such as market capitalization, liquidity, and industry representation. Analysts noted that the index’s inclusion or exclusion of a stock can significantly impact the stock price, as being part of the S&P 500 often results in increased institutional demand and broader investor awareness [1].

Further market activity surrounding Strategy included unusual options trading, highlighting speculative interest in the stock. Over 10,000 deep out-of-the-money call options for MSTR with a strike price of $382.50 and an expiration date of Sept. 12 were traded, indicating investor expectations of a potential price reversal. These trades reflect a high-risk, high-reward strategy, as the options have a low premium cost relative to the stock price. Investors employing these strategies likely anticipated a short-term price increase or sought to generate income through covered call strategies [2].

The broader implications of the S&P 500 rebalance underscore the index’s role in shaping investor behavior and portfolio allocations. The addition of Robinhood and the exclusion of Strategy highlight the balance between innovation and stability that index maintainers seek to achieve. These decisions may influence market sentiment and investment flows, especially in the context of evolving financial technologies and the growing integration of digital assets into traditional investment frameworks [1].

Source:

[1] MSTR News: Strategy Stock Falls as Robinhood Beats It to S&P 500 Inclusion (https://www.coindesk.com/business/2025/09/05/michael-saylor-s-strategy-snubbed-by-s-and-p-500-amid-robinhood-s-surprise-inclusion)

[2] Strategy, Inc. Shows Huge, Unusual Call Options Activity (https://finance.yahoo.com/news/strategy-inc-shows-huge-unusual-173002971.html)