Challenges of Index Inclusion in the 2025 Market: The Battle Between Digital Assets and AI Infrastructure

Introduction: Index Decisions Are Changing the Market Map

Recently, a significant turn occurred in the rebalancing process of the S&P 500 Index. While a Bitcoin-focused public company was removed from the index, an AI-driven storage provider was added. This adjustment is not just a technical change—it indicates which criteria major financial indices are prioritizing and how they are shaping market activity.

Index Providers’ Perspective: Changing Priorities

Traditional index committees do not only consider market capitalization and liquidity. Their main concerns are:

Importance of Earnings Stability
Companies associated with assets like Bitcoin find it difficult to forecast quarterly earnings data. When prices fluctuate rapidly, reported earnings also become volatile. Index providers seek companies that consistently show positive and predictable earnings.

Asset Concentration Issue
When most of a company’s assets are concentrated in digital assets, its risk profile changes rapidly. Traditional investors and index committees view such concentration as a risk indicator, not a growth signal.

Creditworthiness and Liquidity Concerns
USD liquidity and credit ratings provided by rating agencies also play a crucial role. Companies with narrow business models are viewed as higher risk by traditional rating agencies.

Rise of AI Infrastructure: New Opportunities

At the same time, a storage and data management company was included in the S&P 500—this decision reflects the growing demand for AI. Widespread use of large language models and machine learning systems has accelerated the need for storage solutions.

Entry into the index typically results in significant capital flows from passive investors. This immediately improves trading volume and valuation of such companies. It shows that in 2025, AI-based infrastructure remains a top choice for investors.

Questions About Market Transparency

A major debate in the 2025 financial markets is: Can traditional index models accommodate corporate treasuries centered around digital assets?

Two Perspectives:

Some investors believe that with regulatory clarity and accounting transparency, companies with crypto-related risks should also be included in indices. On the other hand, the traditional financial community emphasizes stability, diversification, and forward-looking metrics.

Practical Challenges for Digital Asset-Centric Companies

Beyond income volatility, companies linked to Bitcoin or other cryptocurrencies face the following challenges:

• Lack of Predictability: Asset prices change rapidly, leading to inaccurate income estimates.
• Regulatory Scrutiny: Regulatory oversight varies across markets, adding uncertainty.
• Need for Diversification: Relying on a single digital asset must be avoided.

Impact of Index Inclusion

For the included company

• Buying pressure from passive funds
• Increased institutional visibility
• Improved liquidity
• Immediate valuation boost

For the excluded company

• Short-term negative sentiment
• Potential capital outflows
• Credit pressure
• Need for long-term business model improvements

Future Scenarios: Three Possible Views

Changing Approach:
Index providers may revise policies to accept companies with digital assets based on regulatory clarity and proper accounting.

Traditional Stance:
If index committees stick to their conventional standards, such companies will remain isolated until their earnings stabilize.

Hybrid Solution:
Some index providers may adopt a strategy of creating specialized sub-indices that accommodate digital asset-focused business models and offer better taxonomy to investors.

Recommendations for Companies

If a public company wants to stay involved with digital assets but also qualify for index inclusion, it should:

• Stabilize Income: Develop hedging strategies and diversify income sources.
• Improve Liquidity: Strengthen USD-based liquidity and reserve management.
• Diversify Business: Develop other revenue streams beyond crypto-related activities.
• Maintain Transparency: Keep open communication with regulators and index committees.

Key Points for Investors

Investors should pay attention to:

• Is the company’s income stable and predictable?
• What is the proportion of digital assets in total assets?
• What changes are occurring in credit ratings and regulatory news?
• What announcements and upcoming rebalancing opportunities are related to the index?

Conclusion

It is clear that in the 2025 financial landscape, major index providers prioritize stability, forward-looking income, and strong credit profiles. Public companies involved with Bitcoin and other digital assets face challenging times, but diversification of business models, liquidity improvements, and regulatory transparency can pave the way forward.

At the same time, the emerging strength of AI infrastructure signals that market priorities are shifting rapidly. Investors can make informed decisions only through in-depth research and analysis.

Disclaimer: This analysis is based on publicly available information. Readers are advised to conduct independent research and consult professionals before making any investment decisions. The opinions expressed are for informational purposes only and do not constitute financial advice.