Strategy’s application to join the S&P 500 has been rejected, sparking concern about the future of companies holding Bitcoin reserves. Despite technical qualifications, JPMorgan highlights that this decision reflects broader market hesitancy towards firms heavily investing in Bitcoin. JPMorgan suggests this rejection may impact other similar firms aiming to integrate Bitcoin into their portfolios, potentially discouraging further adoption into mainstream investment spaces like the S&P 500. The decision could signal a shift in how index providers view Bitcoin-heavy companies. The Nasdaq also faces challenges with shareholder approval for issuing shares to purchase cryptocurrencies, adding another layer of pressure. Strategy’s willingness to issue shares at a low price-to-earnings ratio to buy Bitcoin underscores the challenge these firms face: investor interest is waning as stock prices decline and issuance slows. This raises questions about the long-term sustainability of corporate crypto reserves with growing concerns around their operational business models.