MicroStrategy (MSTR) may become eligible for inclusion in the S&P 500 by June 20, 2025, if it can achieve positive GAAP net income over the trailing 12 months. To do so, the company must offset losses from the previous quarters with strong earnings in Q1 2025, which depend on Bitcoin closing above its average purchase price of $96,337. If Bitcoin's price dips below this threshold, MSTR would incur losses, jeopardizing its S&P 500 eligibility. The recent adoption of the Financial Accounting Standards Board's (FASB) rule requiring companies to report Bitcoin at fair value may positively influence MSTR's financials. A Benchmark analyst indicated that the company needs to report a net income of approximately $1.113 billion in Q1 2025 to achieve positive earnings over the last year. Given its history of outperforming existing index constituents, MSTR's potential S&P 500 inclusion would validate its Bitcoin investment strategy and provide indirect exposure to Bitcoin for index funds.

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