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

Odaily reported that in a recent interview, MicroStrategy Chairman Michael Saylor did not explicitly state whether the company may be included in the S&P 500, but he said that given the optimistic outlook on Bitcoin, MicroStrategy may report billions of dollars in quarterly net income next year due to the growth in the value of its Bitcoin holdings, and the accounting rule changes that will take effect in 2025 may allow MicroStrategy to 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 Bitcoin in 2020) is relatively small, with an estimated valuation of only about $1 billion. In addition, this business is in a loss position under 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 Bitcoin holdings from the current undervalued to fair market value, and may result in 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.