Michael Saylor’s Strategy Fails To Make S&P 500 Listing

Strategy, led by Executive Chairman Michael Saylor, has been left out of the latest S&P 500 index rebalancing. The announcement has disappointed investors who expected its inclusion.

Robinhood Surges While Strategy Slips After S&P 500 Update

According to ETF analyst, James Seyffart, AppLovin, Robinhood Markets, and Emcor Group secured spots on the index in the update announced by S&P Global. The news immediately weighed on Strategy’s stock. Shares of the company fell about two percent in after-hours trading following the confirmation. Investors had priced in the possibility of an entry, making the absence a setback for bullish sentiment.

*APPLOVIN, ROBINHOOD, EMCOR GROUP TO JOIN S&P 500 INDEX
— James Seyffart (@JSeyff) September 5, 2025

AppLovin and Robinhood saw the opposite reaction. Their shares jumped in extended trading after the announcement, reflecting investor excitement over the change. Robinhood stock closed at $101.25 during normal hours, down 1.61%, but surged more than 7.5% to $108.90 in post-market trading. The rally underscored the boost that index inclusion brings, as index funds and ETFs prepare to add the stock.

S&P Global said the changes will take effect before the market opens on September 22. This timing means index-tracking funds will adjust their holdings ahead of that date, ensuring alignment with the benchmark. The move will increase exposure for the newly added firms across both institutional and retail portfolios.

Strategy had long been considered a candidate for inclusion due to its market size and liquidity. The company remains the largest corporate holder of Bitcoin, with billions invested. Recently, investors dropped a class action against Strategy over its Bitcoin accounting. That makes its stock highly sensitive to crypto market swings, a factor some analysts believe could weigh against index approval.

Despite the exclusion, Strategy is still in contention for future rebalancing cycles. Companies often face multiple rounds of review before earning a spot.

S&P 500 Snub Driven by Committee’s Broader Criteria, Not Just Company Metrics

Jeff Park, CIO at ProCap BTC and former Bitwise executive, explained why Strategy’s S&P 500 exclusion was predictable. Based on his experience pitching crypto to institutions, he said the decision was never about what MicroStrategy does but about how the index committee evaluates candidates.

The reason I knew MSTR was not going to get into the index better than anyone else is because I understand incentives better than anyone else from my own lived experiences.
It was my job at Bitwise to pitch crypto to institutions. I know exactly how they work. I know what it…
— Jeff Park (@dgt10011) September 5, 2025

Park argued that many crypto investors miss the bigger picture by focusing only on company metrics. A recent policy shift by Michael Saylor on Strategy stock issuance highlight how these internal narratives often capture attention but carry little weight with the S&P committee.

Rather, the committee evaluates many macro variables like competition in the market and the value of firms that want to gain entry. According to him, it was nearly a given that Robinhood would be included since it has positioned itself well with a specified value and its service offerings are clear.

Park adds that S&P committee has its standard and structure which it uses before including asset on its index. Hence, it’s not focused on the company’s narratives. He highlighted that he had already warned months earlier that Strategy’s inclusion was highly unlikely, despite growing investor optimism.
Still, Park urged investors not to lose hope. He emphasized that inclusion could come in the future once the committee recognizes what it deems quality.