S&P 500 Rebalance Snubs Bitcoin-Holding Strategy Inc.

Strategy Inc., formerly known as MicroStrategy, has been rejected from inclusion in the S&P 500 index due to negative GAAP earnings. The company's large Bitcoin holdings have caused unrealized losses of $17.44 billion in a single recent quarter, which disqualifies it under the S&P 500's profitability requirement.

The company satisfies most other S&P 500 criteria, including market capitalization and trading volume. However, its negative GAAP earnings due to Bitcoin losses prevent it from meeting the index's requirements. Strategy has argued that its reserve base exceeds $50.7 billion, surpassing the financial cushion of some current S&P 500 constituents.

The company is not without index representation, as it was added to the Nasdaq-100 following the December 2025 rebalance. However, this exclusion from the S&P 500 means that Strategy will miss out on automatic buying from passive vehicles tied to the index.