Strategy Rides Out Bitcoin Crash, Still On Track For S&p 500 Spot:...

Strategy remains poised for an S&P 500 inclusion in 2025, as the world’s largest Bitcoin holder is unlikely to have to liquidate its holdings to service its debt.

The recent crypto market correction has reignited questions about the durability of corporate Bitcoin treasury plays, but Matrixport researchers say the largest of them, Strategy, still appears on track for possible S&P 500 inclusion.

Despite recurring doubts about whether Strategy’s business model can withstand deep drawdowns, analysts argue that a forced, large-scale liquidation by the world’s largest corporate Bitcoin (BTC) holder is not a “near-term risk,” according to a Wednesday research report by Matrixport.

Instead, the real pressure from the recent correction is on the stockholders who bought the stock at an inflated net asset value (NAV), who are currently suffering the impact of the company’s NAV compression.

While Strategy’s shares fell from a peak of $474 to about $207, the company may still be poised for inclusion in the S&P 500 index in December, wrote Matrixport.

However, investors should treat this as an important reminder of the importance of “timing and valuation” when it comes to investments, the report added.

Related: Taiwan premier promises Bitcoin reserve assessment report by end of 2025

Crypto market intelligence company 10X Research also predicted a 70% chance that Strategy will be added to the S&P 500 index before the end of the year, Cointelegraph reported on Oct. 29.

Strategy received a “B-” credit rating from S&P Global Ratings, placing it in the speculative, non-investment grade territory often associated with “junk bonds.”

This marks the first time a Bitcoin‑treasury-focused company has received an S&P Global assessment, establishing a new potential benchmark for evaluating crypto treasury companies.

Source: CoinTelegraph