Michael Saylor’s company, Strategy, was left off the S&P 500 index this month, surprising many investors who had expected its inclusion following multiple quarters of profitability and a market cap above $92 billion.

Instead, Robinhood, AppLovin, and Emcor Group were selected to join the index, with changes set to take effect on September 22.

Committee cites discretion

Bloomberg ETF analyst James Seyffart commented on the decision:

“The index committee has full discretion to add and remove names as they see fit.”

His colleague Eric Balchunas added that the S&P 500 functions more like an actively managed fund than a purely rules-based one.

Bitcoin exposure raises concerns

Despite meeting all technical criteria, analysts suggest that Strategy’s large bitcoin treasury—holding over 636,000 BTC—made the S&P committee wary.

Jeff Park, CIO at ProCap BTC, explained that the committee considers broader market dynamics and company positioning, not just metrics.

Park noted that Strategy’s heavy bitcoin exposure likely contributed to its exclusion.

Market impact and reactions

Following the announcement, Strategy’s stock (MSTR) dropped about 2% in after-hours trading, while Robinhood surged more than 7% due to the so-called “index effect,” as funds tracking the S&P 500 moved to adjust their holdings.

Analysts estimate that inclusion would have driven roughly $16 billion in passive fund inflows into Strategy’s stock, potentially boosting both its price and bitcoin’s due to the company’s large bitcoin reserves.

Growing trend of corporate bitcoin holdings

The decision comes as corporate bitcoin holdings now exceed 1 million BTC, with firms like Strategy, Metaplanet, and Semler Scientific leading the way.

Strategy’s aggressive accumulation has influenced how companies approach treasury management, even as its bitcoin strategy remains a sticking point for traditional index committees.