Overview

• Strategy met the index’s market cap, profitability and liquidity screens, yet the S&P Index Committee exercised judgment beyond technical eligibility.
• The company’s fair value accounting for its massive bitcoin stack drives large unrealized GAAP gains and losses, a volatility profile cited as a likely concern.
• Strategy remains the largest corporate holder of bitcoin with more than 638,000 BTC, after disclosing additional purchases in early September.
• Stephens estimates S&P 500 inclusion would force passive managers to buy roughly 50 million shares of Strategy, about $16 billion of demand.
• S&P Global declined to comment, and coverage notes Strategy could be reconsidered if deal-driven vacancies arise or during December’s rebalancing, as recent additions like Coinbase and Block signal growing tolerance for crypto exposure.