MicroStrategy: New Steps to Inclusion in the S&P 500
Date: 2024-04-29 Author: Gabriel Deangelo Categories: BUSINESS
Analysts at Benchmark emphasize that MicroStrategy, one of the largest holders of Bitcoin, could become part of the S&P 500 index, which opens up new horizons for this technology giant.
New Accounting Standards
To be included on this prestigious list, MicroStrategy must adopt new accounting standards approved by the Financial Accounting Standards Board in December 2023. These rules will allow companies to value digital assets at their current value and reflect price changes in their earnings reports.
Future Prospects
Analysts estimate the potential impact of these new rules on MicroStrategy shares to be significant. Adoption of the new standard could increase the company's retained earnings balance at the beginning of 2024 by $3.1 billion, and expected earnings per share could be more than $300.
The Road to Inclusion
MicroStrategy already meets most of the requirements for inclusion in the S&P 500, including high stock liquidity and a market value of more than $18 billion. However, the company will need to demonstrate positive earnings in the first quarter of 2024 to fully complete this path.
According to experts, MicroStrategy's inclusion in the S&P 500 index will not only confirm its status as a leading player in the industry, but also recognize the importance of cryptocurrency assets in the modern financial world.
