“The Last Hurdle for Mstr to Qualify for the S&P 500 is to Achiev Positive Gaap Net Income Over the Trailing 12 MONTS.”, – WRITE: www.coindesk.com
Strategy (Mstr) Could Be on Track for Potential S&P 500 Inclusion by June 20.
Currently, The Company Meets All Eligibility Requirements Except One: Achieving Positive Gaap Net Income Over The Trailing 12 MONHS (The MOST RECENT FURER QUARTers COMBINED). To Qualify, Q1 2025 Earnings Must Be High Enough To Offset Losses from The Previous Three Quarters – A Goal That Could Be Achieved Thank Asset Accounting Rule.
The Fasb Rule Change Requires Companies to Recognize Bitcoin (BTC) Holdings at Fair Value, MEANING PRICE GAINS WILL FLOW TROUNT TO THE BOTTOM LINE (As Wuldy). Prior to this Rule, Corporate Digital Asset Holders Were Required to Account for Holdings at Their Weakest Levels. Strategy, for example, in the fourth quarter of 2024 Still ValUED ITS BITCOIN at LESS $ 16,000 per Token, Leading to A $ 1 Billion Impairment Loss Even As Billion Even as Bitcoin Closed Closed.
Holy grailAccording to and Analysis by richard hass on X, Assuming Strategy Holdings don’t kangeen now and March 31, Bitcoin Must Close The FIRST QUARTER ABOTIT quirement. “Based on Q4 2024 Earnings of -$ 671 Million in Net Income Mstr Requires $ 1.113b In Q1 2025 Earnings to Produce Positive Earnings in The Prior Four Fur ‘s current Treasury of 478,740 BTC , The Required BTC Price On March 31 to Achiev This is $ 96.337 ”.
If Bitcoin Prices Remain Strong and Mstr Continues Accuumulating Tokens, S&P 500 Inclusion Is Within Reach. Said Benchmark Analyst Mark Palmer:
“Mstr’s Adoption of the Amended Fasb Guidance StrengThens It Case for S&P 500 Inclusion. Given Its OutperFornce of Eve Current Index Constituent Over Four Years, Exclusion would be surprising. ”
Disclaimer: Richard Hass’s Original X Post Was Made Before Strategy’s Latest Bitcoin Purchase. Coindesk Reached Out for Updated Analysis, Including Monday’s Acquisition.
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