According to PANews, Michael Saylor said in an interview that although MicroStrategy has not yet made it clear whether it will join the S&P 500, the company may report billions of dollars in net income next year due to the growth in the value of Bitcoin holdings. Changes in accounting rules expected to take effect in 2025 will adjust the valuation of the company's Bitcoin assets, which may help MicroStrategy meet the S&P 500's profit requirements.
MicroStrategy's traditional software business is small, valued at only about $1 billion, and is loss-making, making it difficult for this business alone to meet the requirements of the S&P 500. The new accounting rules will allow the fair market value of Bitcoin assets to be reflected in financial statements, which may bring significant net income growth as Bitcoin prices rise.
