MicroStrategy shares fell more than 14% amid volatility over concerns about inclusion in the S&P 500: here's what happened
Shares of Michael Saylor's #MicroStrategy Inc. MSTR have fallen over the past five sessions amid concerns over barriers to inclusion in the S&P 500 and #bitcoin . The company's shares have fallen over the past five sessions amid heightened volatility due to a drop in the price of the BTC/USD coin
What Happened: MicroStrategy meets S&P 500 requirements for market capitalization and trading volume, but does not meet the criteria for revenue, according to Benchmark. Benchmark, according to a report on Investing. com.
To qualify for the S&P 500 list, a company must be profitable in the most recent quarter. In addition, according to the listing criteria, the company must also be profitable for the last four quarters.
the company also faces the challenge of not being able to include its bitcoin assets in its financial statements. According to Benchmark analyst Mark Palmer, MicroStrategy is poised to adopt the Financial Accounting Standards Board's new guidance on bitcoin accounting in Q1 2025.
This change is expected to immediately boost the company's revenue and potentially bring it into compliance with the S&P 500's inclusion criteria.
This criteria will allow MicroStrategy to significantly expand its investor base. This includes institutional investors and index funds tied to the S&P 500 index, which could increase demand for the company's stock.
Why it matters: According to Benzinga #Pro , MicroStrategy's stock price has fallen 14.44% over the past five sessions. On Friday, it fell and closed at $364.20.As a backdrop, bitcoin has fallen 9.95% over the past five days to $93,912.90. The iShares Bitcoin Trust #ETF IBIT has fallen 4.32% over the same period. LINE_. BREAK MicroStrategy now controls about 2.1% of the total bitcoin supply.
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