Banking giant JPMorgan is not sugarcoating the S&P 500 snub for Michael Saylor's Strategy and other Bitcoin treasury firms.
In a recent note, the bank's analysts described this as a "major setback" for such companies.
As reported by U.Today, Strategy, the leading Bitcoin treasury firm, failed to make it to the S&P 500 despite some lofty expectations. Meanwhile, Robinhood and several other companies ended up being included in the much-coveted price index.
Severe implications
As reported by U.Today, Saylor was quick to downplay the severity of the recent S&P 500 snub. The billionaire entrepreneur stated that Strategy did not actually expect to be included during the first quarter of eligibility.
Furthermore, he does not believe that there is some sort of bias against cryptocurrencies.
However, according to JPMorgan analysts, such a move could have severe implications for Bitcoin treasury firms since index providers will be more reluctant to include them after the S&P 500 rejected Strategy.
The bullish narrative surrounding such companies is also crumbling due to investor fatigue and weaker issuance.
Plunging Bitcoin treasury prices
As reported by U.Today, the shares of Bitcoin treasury companies have plunged dramatically since late June.
The shares of Metaplanet, which is often dubbed the "Japanese Strategy," have nosedived 72% since their all-time peak.
Meanwhile, shares of Saylor's MicroStrategy are also down 28% from its local peak of $457 recorded on June 14.
The S&P 500 snub is yet another blow to the Bitcoin treasury firms that are in desperate need of reviving their bullish momentum.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team