Gm nostr fam ☕️ ☀️

Dec. 2023, FASB unanimously voted to give bitcoin fair value accounting treatment as opposed to indefinite, intangible accounting treatment. This officially goes into effect Jan. 2025.

Implications: MicroStrategy will be allowed to accurately report their earnings *and* marked to market Bitcoin holdings, both of which will “suddenly” reveal to Wall St. that MSTR is a $40B company generating $10B on profit per annum.

If you look at how most tech companies are valued, they’re valued at 20-30x earnings (P/E ratio).

That would imply a $200-$300B valuation for MicroStrategy at current performance and BTC price. With MSTR currently valued at $40B, this is a 5-7.5x increase in value.

Further, by Nov 29 it’s looking like they’ll be included into $QQQ (NASDAQ 100 ETF) and it’s almost certain they’ll be included into $SPY (S&P500 ETF) in 2025, meaning they’ll receive billions of dollars passively as a result of their inclusion to the two most popular ETFs.

Don’t overthink it.