Bitcoin News Today: The S&P 500's Crypto Pick: Robinhood Over MicroStrategy, Raising Questions

MicroStrategy Inc. (MSTR), led by co-founder and executive chairman Michael Saylor, missed inclusion in the S&P 500 index during the September 5 rebalance, despite meeting all eligibility criteria. The company, which holds 636,505 Bitcoin (BTC) valued at approximately $70 billion, had been widely expected to be selected given its strong quarterly performance and market visibility [2]. Its stock fell nearly 3% in after-hours trading, undoing gains made during the day, in response to the decision. Inclusion in the S&P 500 would have marked a milestone for the company and the broader cryptocurrency industry, potentially exposing the firm to millions of average investors and portfolio managers [1].

The S&P 500 index, which tracks the largest public companies in the U.S., selected Robinhood Markets Inc. (HOOD) for inclusion, a move that sent its stock up 7% after the market closed. This decision surprised analysts and investors, particularly given the absence of MicroStrategy, which had been seen as a strong contender. Robinhood, a digital trading platform with growing crypto ambitions, will become the third publicly traded company with significant crypto exposure to join the index. The other two are Coinbase (COIN), the largest U.S. crypto exchange, and Block, Inc. (XYZ), the fintech firm led by Jack Dorsey [2].

The decision by S&P Dow Jones Indices to include Robinhood and exclude MicroStrategy has sparked mixed reactions. While Robinhood’s addition is seen as a vote of confidence in the fintech and crypto sectors, the exclusion of MicroStrategy appears to contradict expectations based on its financial performance and market position. Lark Davis, a prominent Bitcoin investor, had forecasted earlier in the week that MicroStrategy would be added to the index, making the decision a surprise to many observers [2]. Meanwhile, Robinhood’s stock closed at $101.25 on the day of the announcement, down 1.61%, but rose to $108.40 after hours following the inclusion news [2].

This rebalance also included AppLovin Corp. (APP), a mobile app marketing company, and Emcor Group Inc. (EME), a construction and facilities services firm, which will join the index on September 22 [3]. At the same time, companies such as MarketAxess, Caesars, and Enphase will be removed from the index. The changes highlight the dynamic nature of the S&P 500, which is periodically adjusted to reflect shifts in market capitalization and industry trends.

The S&P 500 is a widely followed benchmark that influences investment decisions and portfolio allocations globally. Inclusion in the index often leads to an increase in institutional demand for a stock, as it is automatically added to the holdings of many index-tracking funds. For crypto-related firms, inclusion can also serve as a legitimizing factor, reinforcing the sector’s integration into mainstream finance [1]. MicroStrategy’s omission may raise questions about the criteria used by S&P Dow Jones Indices, particularly in a market where crypto assets are increasingly viewed as a strategic asset class [2].

As the crypto market continues to evolve, the inclusion of Robinhood and the exclusion of MicroStrategy underscore the competitive nature of securing a spot in the S&P 500. While the decision may have disappointed some investors and analysts, it also highlights the ongoing debate around the valuation and market positioning of firms in the digital asset space. With Bitcoin and other cryptocurrencies gaining broader institutional adoption, the role of the S&P 500 as a gatekeeper to mainstream finance remains a key topic of discussion.

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] Michael Saylor's MicroStrategy misses S&P 500, Robinhood to make unexpected entry (https://www.thestreet.com/crypto/markets/hopes-dashed-as-microstrategy-snubbed-in-s-p-500-rebalance)

[3] Robinhood finally gets a place in the S&P 500 (https://www.marketwatch.com/story/s-p-500-changes-are-due-out-soon-and-this-could-be-a-big-update-7dfb8e8b)