According to Barrons, Michael Saylor, Chairman of MicroStrategy, did not explicitly state in a recent interview whether the company may be included in the S&P 500. However, he stated that given the optimistic outlook on Bitcoin, MicroStrategy may report quarterly net income of billions of dollars next year due to the increase in the value of Bitcoin holdings. Accounting rule changes that will take effect in 2025 may 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 large-scale purchase of Bitcoin in 2020) is relatively 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), which alone cannot 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 current undervaluation 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 members of the S&P 500 index through an invitation based system, reviewing profitability, market capitalization, and other factors.
