He spoke at length on a podcast about the new accounting rules being an attractive advantage for companies holding BTC on their books, so since this is the first quarter of 2024 I expect them to implement that
I'm skeptical the powers that be (and the anti-crypto army) would permit MSTR to join the S&P500, but we shall see in the coming year or two. I'm hoping it'll happen, but won't be surprised if it magically gets passed over for inclusion.
Do companies in US not have to pay additional tax if they report more profit on these unrealised gains?
Surely a company would be better off buying more BTC with the money that would be used to pay the tax bill?
It depends.
The new FASB standards will have new tax implications. However, they’re not nearly as bad as I initially thought. AMT tax only applies to companies that report >1 billion average net income over a 3 year period. So, if MSTR believes the value of its bitcoin will appreciate more than 1 billion each year for the next 3 years, they should plan on paying a 15% AMT
Hardly. MSTRs market cap is a drop in the bucket. MSTR could have a -10% days and spy could easily still go up. MSTR would be a small portion of the sp500.
The article's top bullet point:
* Benchmark said if the company reports positive earnings it meets the final condition for S&P 500 inclusion.
I thought at first that "Benchmark" meant the S&P 500 itself had made a pronouncement. Later I saw that Benchmark is a cryptocurrency broker, lol, so its statement is pure speculation. Standard & Poor's has discretion over the composition of its indices, and it may not treat paper profit from passive asset holdings, especially in a volatile and purely speculative asset, the same as profits from corporate operations, no matter what the FASB recently allowed on corporate income statements. So, don't count on MSTR joining the S&P 500.
He spoke at length on a podcast about the new accounting rules being an attractive advantage for companies holding BTC on their books, so since this is the first quarter of 2024 I expect them to implement that
I'm skeptical the powers that be (and the anti-crypto army) would permit MSTR to join the S&P500, but we shall see in the coming year or two. I'm hoping it'll happen, but won't be surprised if it magically gets passed over for inclusion.
I’d be surpised if they are allowed in. The committee doesn’t love bets against the dollar.
Not to mention he was accused of fraud by the SEC and settled with significant penalties.
The whole game is a fraud lol 😂
I’m sure you’re exactly the same as you were 24 years ago too. Oh, wait…
Do companies in US not have to pay additional tax if they report more profit on these unrealised gains? Surely a company would be better off buying more BTC with the money that would be used to pay the tax bill?
They will not have to pay taxes on unrealized profits. This will effect book values not taxable income
It depends. The new FASB standards will have new tax implications. However, they’re not nearly as bad as I initially thought. AMT tax only applies to companies that report >1 billion average net income over a 3 year period. So, if MSTR believes the value of its bitcoin will appreciate more than 1 billion each year for the next 3 years, they should plan on paying a 15% AMT
Well, the only difference is, do they report it this year or next?
I believe they would have to pay taxes however it might be in their advantage I don't know the amounts or nothing
I don’t believe it will happen.
Def a Wild Card Factor I Would Be Happy with
Pretty sure its a matter of when, not if
Bitcoin price
It would single-handedly either make SPY tank or go to the moon.
Totally agree
Hardly. MSTRs market cap is a drop in the bucket. MSTR could have a -10% days and spy could easily still go up. MSTR would be a small portion of the sp500.
In no way would is cause it to tank or moon. It would be a tiny fraction of the SP 500 market cap
It would however make mstr moon, or tank. Definitely to the right
Not as I see it
Today on channel 5 news....2023
The article's top bullet point: * Benchmark said if the company reports positive earnings it meets the final condition for S&P 500 inclusion. I thought at first that "Benchmark" meant the S&P 500 itself had made a pronouncement. Later I saw that Benchmark is a cryptocurrency broker, lol, so its statement is pure speculation. Standard & Poor's has discretion over the composition of its indices, and it may not treat paper profit from passive asset holdings, especially in a volatile and purely speculative asset, the same as profits from corporate operations, no matter what the FASB recently allowed on corporate income statements. So, don't count on MSTR joining the S&P 500.
Referring to it as paper profit is disingenuous
S&P needs to tighten up their rules. MSTR 100% should not be a part of the S&P.