Michael Saylor: Accounting rules coming into effect next year could allow MicroStrategy to meet S&P 500 profit requirements
ChainCatcher news, according to Barrons, MicroStrategy Chairman Michael Saylor did not explicitly state in a recent interview whether the company may be included in the S&P 500, but he said that given the optimistic outlook on <CRO>, MicroStrategy may report billions of dollars in quarterly net income next year due to the growth in the value of its <CRO> holdings, and the accounting rule changes coming into effect in 2025 may make MicroStrategy meet the profitability requirements for inclusion in the S&P 500. It is reported that the scale of MicroStrategy's traditional software business (its main business before it started buying large amounts of <CRO> in 2020) is relatively small, with an estimated valuation of only about $1 billion. In addition, this business is in a loss-making state according to GAAP (Generally Accepted Accounting Principles), which makes it difficult to meet the inclusion requirements of the S&P 500 index. The upcoming accounting rules will adjust the company's <CRO> holdings from the current undervalued to fair market value, and may result in significant net income growth when <CRO> 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.
