Robinhood Joins S&P 500, MicroStrategy Excluded in Crypto

Robinhood Markets will be added to the S&P 500 index on September 22, while MicroStrategy was unexpectedly excluded. Robinhood’s market capitalization has doubled year-to-date to over $100 billion, and its diversified revenue streams—including $160 million in Q2 crypto transaction revenue, new stock tokens in Europe, and U.S. crypto staking—secured its S&P 500 inclusion. This index effect is likely to attract more than $10 billion in passive inflows, sending HOOD shares up 7% on the announcement. MicroStrategy met the formal S&P 500 criteria but was rejected, likely due to past GAAP losses under bitcoin accounting rules, volatility from its over 3% Bitcoin supply holdings, and ongoing regulatory uncertainty. Despite a $10 billion net income in Q2, MSTR shares fell 3% after the decision. Traders should note the divergence between traditional profitability metrics and crypto-centric business models in index inclusion decisions. The S&P 500 inclusion signals growing mainstream crypto adoption. For traders, these developments highlight the impact of stable earnings and market cap requirements on index-driven capital flows. The moves in HOOD and MSTR offer insights into how major indices can influence both stock performance and sentiment in the crypto market.