MSTR Stock Tumbles After S&P 500 Snub—Despite Massive Bitcoin Bet

MicroStrategy's rejection from the S&P 500 sends shares sliding—proof that even a $10B bitcoin bet can't buy Wall Street's approval.

The Crypto Conundrum

MSTR's bitcoin-heavy strategy continues dividing traditional finance. The company loaded up on digital gold while institutional adoption surged—yet index committees remain skeptical of crypto-correlated assets.

Market Realities

Index inclusion drives billions in passive flows. Getting snubbed means missing out on automatic buying from pension funds and ETFs—a brutal reminder that crypto enthusiasm doesn't always translate to traditional finance credibility.

Wall Street's Cold Shoulder

Because nothing says 'mature asset class' like getting rejected from a benchmark while your treasury holds billions in digital assets. Sometimes even a perfect hedge isn't enough to satisfy the old guard's spreadsheet requirements.

The crypto and stock markets opened on edge today, with traders waiting for the Federal Reserve’s next rate move. Bitcoin is holding near $110,776 after a rough week, while U.S. equities continue to swing between gains and losses.

MicroStrategy’s S&P 500 Snub

MicroStrategy (MSTR), the biggest corporate holder of bitcoin under Michael Saylor, was widely expected to join the. The company ticked key boxes—market cap, liquidity, and public float.

But instead of MSTR, the index committee chose.

Bloomberg analystcriticized the decision, suggesting a hidden hand behind it:

“The S&P committee acts more like a shadow active fund than a rules-based index.”

He also compared this move to past delays faced by Tesla and Microsoft before their inclusion.

MSTR Price Drop and Investor Concerns

The rejection hit MicroStrategy stock hard. Shares fell almost, slipping belowand raising fears of a drop toward.

Analysts warn that missing the S&P 500 means missing a surge of ETF and index-fund buying. This not only costs MSTR fresh capital inflows but also risks damaging its credibility on Wall Street, despite its massive Bitcoin treasury.

Robinhood Secures the Spotlight

While MSTR faces disappointment,is a big win. Joining the index boosts:

• Visibility with mainstream investors
• Credibility among institutions
• Trust in its long-term growth

It’s a strong milestone for a platform that became a favorite of retail traders during the pandemic.

Next FOMC Meeting

The focus now shifts to the September 17 FOMC meeting. If the Fed cuts rates, liquidity could FLOW into risk assets like Bitcoin and MicroStrategy stock. But until then, investors are left asking: Did politics and discretion matter more than financial criteria in the S&P’s decision?