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Analysis: If Bitcoin closes above $96,337 in Q1, Strategy is expected to be included in the S & P 500 index in the first half of the year

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2025-02-16 02:27:09
Strategy (MSTR) is on track to be included in the S & P 500 Index by June 20. Currently, the company meets all eligibility requirements with the exception of one: Positive GAAP net income for the last 12 months (the last four quarters combined). To be eligible, the company's 2025 Quarter 1 earnings must be high enough to offset losses from the first three quarters. This goal can be achieved by adopting (now mandatory) Financial Accounting Standards Board (FASB) rules for digital asset accounting.
To do this, Bitcoin needs Quarter 1 to close above the company's average purchase price of $96,337 over the three-month period. Closing below that level would force Strategy to record a loss, perhaps hindering its inclusion in the S & P 500.
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