💰 Michael Saylor: MicroStrategy's profit potential under the new accounting is expected to drive its inclusion in the S&P 500
MicroStrategy founder Michael Saylor recently gave an interview. Although he did not directly say whether they would be included in the S&P 500, he was confident about the company's future prospects.
He said that with the implementation of new accounting rules in 2025, MicroStrategy may be expected to bring in billions of dollars in potential quarterly net income from its Bitcoin holdings.
As of December 15, MicroStrategy held 439,000 Bitcoins, with a total value of more than $45 billion, accounting for about 2% of the total supply of Bitcoin.
Although MicroStrategy's traditional software business is not large, the new accounting rules allow them to calculate their Bitcoin holdings at market value when the value of Bitcoin rises, so that they can see real profit growth on the books in their quarterly reports.
Although MicroStrategy will be officially included in the Nasdaq 100 Index on December 23, triggering buying in related indexes. At the same time, according to Bloomberg analysts, the company will receive a 0.47% weight and is expected to attract about $2.1 billion in passive capital inflows. But there is still a view that the company is still less likely to be included in the S&P 500 Index.
The S&P 500 Index Committee has strict standards when selecting members, and will consider factors such as profitability and market value. However, Saylor believes that with the implementation of the new rules, MicroStrategy's profitability is expected to increase significantly. In this way, MicroStrategy's chances of being selected by the S&P 500 Index will be greatly increased.
Overall, Saylor is confident about MicroStrategy's prospects. He believes that the new accounting rules will enable companies to more accurately reflect the market value of Bitcoin in their financial statements, which is a major benefit for MicroStrategy. In addition, this change could lay a solid foundation for the company to be included in the S&P 500 index by June 2025.
💬 What do you think of MicroStrategy's future development? Do you think it will be included in the S&P 500 index? Leave your opinions and views in the comment section!
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