Michael Saylor: Accounting rules coming into effect next year may allow MicroStrategy to meet SP 500 profit requirements

CoinRank News: MicroStrategy Chairman Michael Saylor did not explicitly say in a recent interview whether the company might be included in the SP 500, but he said that given the optimistic view on Bitcoin, MicroStrategy could report billions of dollars in quarterly net income next year due to the growth in the value of its Bitcoin holdings, and that changes in accounting rules that will take effect in 2025 could enable MicroStrategy to meet the profit requirements for joining the SP 500. It is reported that MicroStrategys traditional software business (its main business before it began to buy a large amount of Bitcoin in 2020) is small in scale and may be valued at only about $1 billion. In addition, the business is in a loss-making state according to GAAP (Generally Accepted Accounting Principles in the United States), which alone is difficult to meet the requirements for inclusion in the SP 500 index. The accounting rules that will take effect will adjust the value of the companys Bitcoin holdings from the current low valuation to the fair market value, and may bring significant net income growth when the price of Bitcoin rises. However, the SP Global Index Committee decides on the members of the SP 500 index by invitation, reviewing profitability, market value and other factors.