🔥 Key Takeaways
- Peter Schiff questions whether Strategy (MSTR) can join the S&P 500 due to its heavy Bitcoin holdings.
- MSTR ended 2025 down ~49%, contrasting with the S&P 500’s 17.3% rise.
- Critics argue MSTR functions more as a Bitcoin proxy than an operating business.
- Strategy holds 672,497 BTC at an average price near $75,000.
Is Bitcoin Disqualifying Strategy From the S&P 500?
Peter Schiff, a vocal critic of Bitcoin, has raised concerns about Strategy’s (MSTR) eligibility for inclusion in the S&P 500 index. The firm, which has heavily invested in Bitcoin, saw its stock price plummet by approximately 49% in 2025, starkly contrasting the S&P 500’s 17.3% gain during the same period. Schiff’s skepticism stems from MSTR’s business model, which critics argue resembles a Bitcoin proxy rather than a traditional operating company.
Strategy’s Bitcoin holdings have grown significantly, with the firm now possessing 672,497 BTC at an average price of around $75,000 per coin. While this positions MSTR as one of the largest corporate holders of Bitcoin, its reliance on the cryptocurrency’s performance has led to volatility in its stock price. This raises questions about whether MSTR aligns with the S&P 500’s criteria, which typically favor stable, revenue-generating businesses.
Schiff’s critique highlights the broader debate around Bitcoin’s role in corporate portfolios. While some view Bitcoin as a strategic asset, others argue that its speculative nature undermines its suitability for inclusion in major indices. As Strategy continues to bet on Bitcoin, its future in the S&P 500 remains uncertain, especially if the cryptocurrency’s volatility persists.
For now, Strategy’s case serves as a cautionary tale for companies considering Bitcoin as a core part of their business strategy. Whether it can regain investor confidence and meet the S&P 500’s standards remains to be seen.
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