Corporate Bitcoin Treasury Strategy: Navigating Market Corrections & S&P 500 Prospects

Wednesday Nov 19 2025 11:40

Duration

2 min

  1. 1. Introduction

  2. 2. MicroStrategy's Resilience in the Face of Market Volatility

  3. 3. Potential S&P 500 Inclusion

  4. 4. Considerations for Investors

  5. 5. Challenges for Smaller Companies

  6. 6. MicroStrategy's Stance

  7. 7. Conclusion

Introduction

The recent crypto market correction has reignited questions about the durability of corporate Bitcoin treasury plays. However, research suggests that MicroStrategy, the largest of them, appears on track for possible S&P 500 inclusion.

MicroStrategy's Resilience in the Face of Market Volatility

Despite recurring doubts about MicroStrategy’s business model to 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.” The real pressure from the recent correction is on stockholders who bought the stock at an inflated net asset value (NAV), who are currently suffering the impact of the company’s NAV compression.

Potential S&P 500 Inclusion

While MicroStrategy’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. When overlaid with Bitcoin, the shares now appear relatively cheap, and the possibility of S&P 500 inclusion in December still exists.

Considerations for Investors

Investors should treat this as an important reminder of the importance of “timing and valuation” when it comes to investments. MicroStrategy received a “B-” credit rating from S&P Global Ratings, placing it in the speculative, non-investment grade territory often associated with “junk bonds.”

Challenges for Smaller Companies

Concerns persist over the sustainability of smaller digital asset treasuries (DATs), as several companies saw their market net asset value (mNAV) fall below key thresholds this year, effectively limiting their ability to raise funds for further Bitcoin purchases.

MicroStrategy's Stance

MicroStrategy’s executive chairman, Michael Saylor, said he is not concerned about another major Bitcoin downturn, stating that the company is engineered to take an 80 to 90% drawdown and keep on ticking. MicroStrategy bought 8,178 Bitcoin worth $835 million in its latest purchase announced recently, marking a significant increase compared to the average Bitcoin investments of around 400–500 BTC over the past month.

Conclusion

Despite market corrections and Bitcoin price volatility, MicroStrategy remains in a relatively strong position, with the potential for S&P 500 inclusion. However, investors should exercise caution and carefully evaluate their investments.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

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Written by:

Ava Grace

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