Michael Saylor: Accounting rules coming into effect next year could enable MicroStrategy to meet S & P 500 profitability requirements

On December 22nd, according to Barrons, MicroStrategy Chairperson Michael Saylor did not clarify in a recent interview whether the company might be included in the S & P 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 bitcoin holdings. Accounting rule changes coming into effect in 2025 could enable MicroStrategy to meet the profitability requirements for joining the S & P 500.
It is reported that MicroStrategy's traditional software business (its main business before the start of large-scale bitcoin purchases in 2020) is small and may be valued at only about $1 billion. In addition, the business is at a loss according to GAAP (US General Accounting Principles), which alone is difficult to meet the inclusion requirements of the S & P 500 Index. The upcoming accounting rules will adjust the value of the company's bitcoin holdings from the current low valuation to fair market value, and may lead to significant net income growth when the bitcoin price rises. However, the S & P Global Index Committee decides S & P 500 index members on an invitation basis, reviewing profitability, market capitalization and other factors.