Bitcoins <\/p>\n
While corporate enthusiasm for Bitcoin<\/a>-centric treasury strategies is faltering \u2013 at least according to JPMorgan<\/a> analysts \u2013 several nations are moving in the opposite direction.<\/p>\n The United States<\/a> is progressing on a Strategic Bitcoin Reserve<\/a> through an executive order from March 2025, joining El Salvador, which has been steadily accumulating Bitcoin since 2021 and Bhutan<\/a>, which integrates mining into its state-backed holdings.<\/p>\n Pakistan<\/a> followed with its own reserve announcement in May, and legislative efforts are advancing in countries like Kyrgyzstan<\/a> and Kazakhstan<\/a>. Together, these developments underscore a recognition of Bitcoin as a strategic asset at the national level.<\/p>\n In contrast, public companies that have built their balance sheets around Bitcoin are running into headwinds. Investors and lenders are showing reduced appetite for equity and debt tied to crypto-heavy treasuries.<\/p>\n Equity issuance has slowed, borrowing costs are rising, and exotic instruments such as bitcoin-backed loans or token-linked convertibles are drawing scepticism rather than enthusiasm.<\/p>\n JP Morgan analysts suggest that capital is more likely to flow toward exchanges, miners and other operators with revenue-generating businesses rather than balance-sheet plays.<\/p>\n Related:<\/strong> <\/strong>Bitwise CIO: Banks Should Reward Customers Instead of Fearing Stablecoins<\/strong><\/a><\/p>\n This shift was highlighted by the S&P 500 index committee\u2019s decision to deny entry to Strategy (formerly MicroStrategy), despite the company meeting eligibility thresholds.<\/p>\n JPMorgan analysts, led by Nikolaos Panigirtzoglou, argued the move reflects a broader reluctance to elevate firms that function as de facto Bitcoin holding vehicles.<\/p>\n This comes just days after Michael Saylor spoke with great confidence, telling CNBC that the inclusion in the index \u201cwill happen\u201d.<\/p>\n Historically, Strategy\u2019s stock benefitted when Bitcoin exposure was funnelled through major benchmarks such as the Nasdaq 100, MSCI USA, and the Russell 2000. The S&P 500 exclusion, however, indicates that this indirect exposure channel is losing momentum and may no longer provide the same uplift.<\/p>\n The financial environment is compounding the pressure. Nasdaq now requires crypto-heavy companies to secure shareholder approval before issuing new stock, and Strategy has abandoned its prior pledge not to sell below a 2.5x multiple.<\/p>\n With debt carrying higher premiums and equity sales harder to execute, JPMorgan noted that fatigue is visible in both trading activity and financing.<\/p>\n Related:<\/strong> <\/strong>Blockchain Game Alliance Launches Revamped Global Industry Survey<\/strong><\/a><\/p>\n<\/p><\/div>\nCorporate Models Under Pressure<\/h2>\n
The S&P 500 Draws a Line<\/h2>\n
Tightening Market Conditions<\/h2>\n