Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Strategy Could Be Eligible for S&P 500 Inclusion in June if Bitcoin Closes Q1 Above $96K

Strategy Could Be Eligible for S&P 500 Inclusion in June if Bitcoin Closes Q1 Above $96K

CointimeCointime2025/02/16 01:11
By:Cointime

From coindesk By James Van Straten| Edited by Stephen Alpher

What to know:

  • Strategy could qualify for SP 500 inclusion as early as June 20, if Q1 2025 earnings are strong enough to offset prior bitcoin-driven losses.
  • For that, bitcoin would need a Q1 closing price above the company's average purchase price of $96,337 during those three months.
  • A close below that level would force Strategy to book losses, perhaps impeding SP inclusion.

Disclaimer: The analyst who wrote this piece owns shares of Strategy (MSTR)

Strategy (MSTR) could be on track for potential  SP 500 inclusion  by June 20.

0 seconds of 28 minutes, 39 secondsVolume 0%

Currently, the company meets all eligibility requirements except one: achieving positive GAAP net income over the trailing 12 months (the most recent four 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 thanks to the adoption (now mandatory) of the Financial Accounting Standards Board (FASB) digital asset accounting rule.

The FASB rule change requires companies to recognize bitcoin (BTC) holdings at fair value, meaning price gains will flow through to the bottom line (as would price declines). 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 than $16,000 per token, leading to a $1 billion impairment loss even as bitcoin closed the year at about $94,000.

Holy Grail

According to an analysis by  Richard Hass  on X, assuming Strategy holdings don't change between now and March 31, bitcoin must close the first quarter above $96,337 for the company to meet the positive trailing 12-month earnings requirement. “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 quarters and become eligible for SP 500," he wrote. "Based on MSTR's  current treasury of 478,740  BTC, the required BTC price on March 31 to achieve this is $96,337”. 

If bitcoin prices remain strong and MSTR continues accumulating tokens, SP 500 inclusion is within reach. Said Benchmark analyst Mark Palmer:

“MSTR’s adoption of the amended FASB guidance strengthens its case for SP 500 inclusion. Given its outperformance of every current index constituent over four years, exclusion would be surprising.”

“While joining the Nasdaq-100 was significant, the SP 500 is the holy grail," continued Palmer." Inclusion would validate its Bitcoin strategy, as all SP 500 index funds would hold MSTR shares, indirectly exposing investors to Bitcoin.”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.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

SLPUSDT now launched for futures trading and trading bots

Bitget Announcement2025/07/23 11:57

Notice: Maintenance for VND deposit service

Bitget Announcement2025/07/21 12:30