BlockBeats news, on December 22, reported by Barrons, MicroStrategy Chairman Michael Saylor did not explicitly state whether the company might be included in the S&P 500 during a recent interview, but he indicated 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 effective in 2025 may allow MicroStrategy to meet the profitability requirements to join the S&P 500.
It is reported that MicroStrategy's traditional software business (its main business before it began purchasing Bitcoin in large quantities in 2020) is relatively small, with a valuation of only about $1 billion. Moreover, this business is in a loss position according to GAAP (Generally Accepted Accounting Principles), making it difficult to meet the inclusion requirements for the S&P 500 index based solely on this. The upcoming accounting rules will adjust the company's Bitcoin holding value from its current undervaluation to fair market value, potentially bringing 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.
