Strategy Stock Plummets After Shock Exclusion from S&P 500 Index

Another blue-chip dream bites the dust as Strategy Stock gets the cold shoulder from Wall Street's most exclusive club.

The Rejection Notice

Index committees axed the stock from their prestigious lineup—no explanation, no consolation prize. Just the silent treatment that sends institutional investors scrambling for the exits.

Market Aftermath

Shares nosedived immediately after the announcement. Trading volumes exploded as algorithms executed sell orders faster than human traders could blink. Another reminder that in traditional finance, you're only as good as your last inclusion criteria.

Wall Street's Fickle Friends

Index funds dumped positions mechanically—no sentiment, no second thoughts. Just pure, unemotional rebalancing that leaves retail holders holding the bag. Because nothing says 'efficient markets' like automated panic selling.

Meanwhile in crypto-land: decentralized indices never kick anyone out—they just let the market decide. But hey, who needs transparency when you've got committee decisions behind closed doors?

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Cryptocurrency bulls and shareholders of Strategy had hoped that the company would finally be added to the S&P 500. Analysts said the highly anticipated move would help to further legitimize the crypto industry and the companies that support it.

Stocks that are added to the S&P 500 often rise as mutual funds and exchange-traded funds (ETFs) that track the index’s performance are required to buy its shares. S&P Dow Jones, which manages the index, undertakes a quarterly rebalancing, adding and eliminating certain stocks based on their performance and market weighting.

Long-Time Coming

With consistent profitability, Strategy has met all the requirements for inclusion in the S&P 500 for several quarters, and many advocates saw previous exclusions from the index as a snub against both Strategy and the broader crypto sector. Unfortunately, S&P Dow Jones has once again ruled against Strategy.

As of June 30 this year, Strategy, led by entrepreneur Michael Saylor, held 597,325 BTC on its balance sheet, making it the world’s largest corporate owner of the cryptocurrency. Strategy’s bitcoin holdings are currently worth just over $65 billion based on Bitcoin’s current price of $111,000 per digital token.

Is MSTR Stock a Buy?

The stock of Strategy has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 12 Buy and one Sell recommendations made in the last three months. The average MSTR price target of $564.15 implies 67.95% upside from current levels.