MNAV means nothing. Except the multiple that saylor can exploit. What means something is revenue growth. P/E value. MSTR has 500,000 BTC ever $2000 BTC goes up a quarter is $billion profit on their balance sheet with FASB accounting you can say it doesn't make sense but that is what makes sense to the markets. Reason why TSLA had a shit 4th quarter with a shit outlook but reported FASB and the stock popped because of BTC earnings.
Discussion
What’s the best resource for a summary on FASB alterations and impacts? Certainly an area I’ve not delved into much
When you say “revenue” I am confused. Owning Bitcoin on the balance sheet that increases in value, due to its underlining price appreciation then pushes equity value, but where does revenue change?
If a company owns a real estate portfolio, and those assets increase in value, so does the balance sheet and equity value, but it doesn’t change the revenues of those assets
Value up from first day of quarter to last day is revenue. Down is lost revenue. Check tsla q4 report they reported using FASB
FASB (Financial Accounting Standards Board) recently changed its accounting rules for Bitcoin (BTC), which has major implications for companies holding BTC, like MicroStrategy (MSTR).
Old FASB Rules (Pre-2024)
BTC was classified as an intangible asset (like goodwill or trademarks).
Companies had to impair BTC holdings if the price dropped below purchase price, meaning they had to report a loss.
If BTC’s price went back up, they could not mark it up as a gain on the balance sheet—gains were only recognized when BTC was sold.
New FASB Rules (Starting 2024)
BTC is now treated as a fair value asset, meaning companies must mark it up or down every quarter based on market price.
Gains and losses from BTC price changes are reported in earnings—even if the company doesn’t sell.
Why This Matters for Earnings & Stock Prices
Companies like MicroStrategy (MSTR), Tesla, and Block will now report Bitcoin gains as earnings each quarter if BTC goes up.
Investors will see higher earnings on financial statements, which can attract more institutional investment.
MSTR, as a leveraged Bitcoin play, benefits massively because its stock value is closely tied to BTC price.
"For a Dude on NOSTR" Explanation
If someone on NOSTR is saying BTC going up "counts as earnings now," they mean that companies holding Bitcoin—like MicroStrategy—will report Bitcoin price increases as part of their official earnings instead of just an asset revaluation on the balance sheet. This change makes BTC gains more visible and impactful for stock valuations.
Fascinating. Regardless of right or wrong, being able to account for balance sheet growth as earnings is a big change
So re my point of competition. No one can match the MSTR btc stack, so their earnings growth will be the biggest, meaning their equity price will be more volatile to the upside than others. Ie even if you setup a BTC treasury now, as a fund or equity, your earnings growth can never match MSTR
Interesting
Thank you for sharing
What saylo is doing is genius. People saying things like this highly leveraged equity is super risky and will go bankrupt. They aren't looking at all. They are less leveraged than most companies. They have 9bil in dept and 40 bil in bitcoin. They issue debt in Converts that mature and vanish. They raise money with STRK preferred stock for people who basically want zero down side and a chance at MSTRs upside and they sell ATM shares of MSTR when they feel the premium is juicy. There is an ETF coming out that will buy only BTC converts MSTR will be able to get even better terms on their converts they are already issuing them at 0% intrest.
It's easy to neg on MSTR and say some buzz words if you do a very deep dive you will see the genius.