MicroStrategy's Potential S&P 500 Inclusion Tied to New Accounting Adoption

The software company could see a significant earnings boost and S&P 500 inclusion if it adopts new FASB accounting standards.

MicroStrategy may experience a $3 billion boost in earnings if it adopts new FASB ASU 2023-08 accounting standards early.
The company's decision could lead to its inclusion in the S&P 500, contingent on reporting positive earnings.
MicroStrategy has faced $2.27 billion in cumulative impairment losses under old FASB rules, impacting its financial reports.
Analysts are divided on whether MicroStrategy will pursue early adoption of the new standards.
The potential adoption could significantly alter MicroStrategy's earnings per share, with an estimated increase of over $300 per share.