According to Barron’s, MicroStrategy chairman Michael Saylor remained noncommittal regarding his company’s potential inclusion in the S&P 500 index during a recent interview. Despite this, he suggested that due to their positive outlook on Bitcoin, they could potentially report billions of dollars in quarterly net income next year as the value of their substantial Bitcoin holdings continues to grow. This increase would be further bolstered by pending accounting rule changes set to come into effect in 2025, which would allow for the fair market valuation of digital assets such as Bitcoin. This change could make MicroStrategy more attractive for consideration under the new criteria required for entry into the prestigious index. Currently, MicroStrategy’s primary business focus lies with its traditional software ventures; however, these operations have struggled financially under U.S. generally accepted accounting principles (GAAP). As a result, they face an uphill battle meeting the stringent profitability standards typically associated with S&P 500 memberships. Nevertheless, given recent developments related to digital asset valuations and potential policy shifts regarding their recognition within corporate balance sheets, there remains some hope among industry observers that companies like MicroStrategy may eventually find themselves eligible for consideration within the ranks of the world’s most influential publicly traded companies.
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Source: m.theblockbeats.info
