Robinhood Markets Inc. (HOOD) saw a 6% increase in after-hours trading after being added to the S&P 500 index. Meanwhile, Strategy Inc. (MSTR) did not qualify despite meeting the criteria.
Robinhood's Addition to S&P 500
The changes to the S&P 500 index will take effect on September 22. Robinhood, a digital trading platform, has been showing growing ambitions in cryptocurrencies, with crypto revenue of $160 million in the second quarter this year, accounting for 16% of its total revenue.
Strategy's Issues with the Index
Strategy shares fell nearly 3% in after-hours trading, resulting in a monthly loss of more than 12%. Despite announcing one of its strongest quarters with a $10 billion net income, the company was not included in the index. Bloomberg analyst Eric Balchunas questioned, "Why wasn't [$MSTR] allowed into the S&P 500 Index despite meeting all the criteria?"
Strategy's Response to Nasdaq's New Requirements
Strategy remains listed on Nasdaq, which is tightening its requirements for companies using debt financing to acquire cryptocurrencies. In response to these new rules, Strategy indicated that Nasdaq's position on digital asset treasury formations does not affect its ATMs or other capital market activities.
Thus, while Robinhood's addition to the S&P 500 is a positive development, Strategy's miss raises questions about the current regulatory trends surrounding crypto assets in the stock market.
