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Bloomberg predicts new accounting rules will turn MicroStrategy from loss to profit next year

Bloomberg predicts new accounting rules will turn MicroStrategy from loss to profit next year

CointimeCointime2024/10/30 12:46
By:Cointime

On October 30th, MicroStrategy's stock performance over the past two years has outperformed almost all large US stocks, including Nvidia. The unconventional decision of its co-founder and chairman, Michael Saylor, to purchase Bitcoin four years ago to offset inflation has pushed its rise by over 1700%. MicroStrategy has shifted from using cash flow to issuing convertible notes to purchase Bitcoin and plans to explore other ways to provide funding for more purchases. Saylor stated that he essentially borrowed money at a 1% interest rate to purchase Bitcoin. Bloomberg expects next year's new accounting system to turn MicroStrategy's losses into profits, as Bitcoin assets will be revalued at market value, which could result in the company's net profit of $2 billion next year, compared to a loss of about $200 million this year.

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