Disclaimer: The analyst who wrote this work owns Strategic Stock (MSTR).
The Strategy (MSTR) could be on track for the potential inclusion of the S&P 500 by June 20th.
Currently, the company meets all but one eligibility requirements. We have achieved aggressive GAAP net profits for 12 months (including the latest four quarters). To qualify, revenue for the first quarter 2025 must be high enough to offset losses from the previous three quarters. This is a goal that can be achieved thanks to the adoption of the Financial Accounting Standards Board (FASB) digital asset accounting rules (currently required).
Changes to FASB rules require companies to recognize their Bitcoin (BTC) holdings at fair value. In other words, a price rise is a bottom line profit (similar to a price drop). Prior to this rule, corporate digital asset owners had to explain their holdings at the weakest level. For example, the strategy would still value Bitcoin as under $16,000 per token in the fourth quarter of 2024, resulting in an impairment loss of $1 billion, even if Bitcoin ended at around $94,000 a year. Ta.
Assuming that strategic holdings will not change from now until March 31, Bitcoin will be more than $96,337 to meet positive 12-month revenue requirements, according to an analysis by X’s Richard Hass. You must close one quarter. “Based on the fourth quarter of 2024, the net profit of $671 million MSTR required $111.3 billion in revenue for the first quarter of 2025, resulting in positive revenue in the previous four quarters, and S&P You can qualify for 500., the BTC price required for March 31st to achieve this is $96,337.
If Bitcoin prices continue to be strong and MSTR continues to accumulate tokens, the S&P 500 inclusion is within range. Benchmark analyst Mark Palmer said:
“The adoption of the revised FASB guidance by MSTR will strengthen the S&P 500 Inclusion litigation. Given the outperformance of all current index components over the past four years, the exclusion is surprising.”
“It was important to be part of the Nasdaq-100, but the S&P 500 is the Holy Grail,” continues Palmer. Inclusion tests the Bitcoin strategy as all S&P 500 index funds own MSTR stocks and indirectly expose investors to Bitcoin. “Disclaimer: Richard Hass’ Original X Post was created prior to Strategy’s latest Bitcoin purchase. Coindesk reached out to the latest analysis, including Monday’s acquisition.