The author of this article is a shareholder of Strategy (MSTR). It is worth noting that Strategy (MSTR) may potentially be added to the S&P 500 by June 20. This is based on the fact that the company currently meets all eligibility requirements except for one, which is achieving positive GAAP net income over the trailing 12 months. However, with the recent adoption of the Financial Accounting Standards Board (FASB) digital asset accounting rule, which requires companies to recognize bitcoin holdings at fair value, Strategy may be able to meet this requirement in the first quarter of 2025. This would be possible if bitcoin prices remain strong and the company continues to accumulate tokens. This potential inclusion in the S&P 500 would be a significant validation of Strategy’s bitcoin strategy and would indirectly expose investors to the cryptocurrency. It is worth noting that this analysis was done before Strategy’s latest bitcoin purchase, so the company’s chances of meeting the positive earnings requirement may have increased.
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