Strategy Aims for S&P 500 Inclusion by June with Bitcoin Above $96K
Strategy (MSTR) may achieve S&P 500 inclusion by June 20, pending positive GAAP net income over the trailing 12 months. Currently, it meets all eligibility criteria except for this requirement.
Key points:
- Q1 2025 earnings must offset losses from previous quarters to qualify.
- The new FASB rule mandates recognizing bitcoin holdings at fair value, impacting net income positively.
- In Q4 2024, MSTR reported a $1 billion impairment loss despite bitcoin closing around $94,000.
- Bitcoin needs to close above $96,337 by March 31 for MSTR to meet the earnings requirement.
- MSTR holds 478,740 BTC, necessitating high bitcoin prices for favorable earnings results.
- S&P 500 inclusion would validate MSTR's bitcoin strategy and impact index fund investments.
Analysts suggest that MSTR’s recent adoption of FASB guidance bolsters its case for inclusion in the S&P 500, with strong performance compared to current index constituents.