PANews December 22 news, according to Barrons, MicroStrategy Chairman Michael Saylor did not explicitly state in a recent interview whether the company might be included in the S&P 500, but he noted that, given the optimistic outlook on Bitcoin, MicroStrategy could report billions of dollars in quarterly net income next year due to the increase in the value of its Bitcoin holdings. The accounting rule changes set to take effect in 2025 may allow MicroStrategy to meet the earnings requirements for inclusion in the S&P 500.
It is reported that MicroStrategy's traditional software business (its main business before it began acquiring Bitcoin in large amounts in 2020) is relatively small, with a valuation of only about $1 billion. Furthermore, this business is operating at a loss according to GAAP (Generally Accepted Accounting Principles), making it difficult to meet the inclusion requirements for the S&P 500 index. The upcoming accounting rules will adjust the company's Bitcoin holdings from their current undervalued state to fair market value and may bring significant net income growth when Bitcoin prices rise. However, the S&P Global Index Committee decides on S&P 500 index members by invitation, reviewing profitability, market capitalization, and other factors.
