Accounting

Bitget will burn BGB worth over 5 billion USD, accounting for 40% of the total supply

ChainCatcher news, the Bitget team has released a new version of the BGB white paper, announcing the introduction of a buyback and burn mechanism. In the first burn, 800 million BGB held by the core team will be destroyed in one go, accounting for 40% of the total supply. Based on the current price of BGB, the value of the destroyed portion exceeds 5 billion USD. After the burn, the total supply of BGB will be reduced to 1.2 billion, with 100% full circulation.At the same time, BGB will initiate quarterly buyback and burn starting in 2025. Bitget will use 20% of the quarterly profits from the exchange and wallet business to buy back and burn BGB. The profits will come from trading fees on Bitget exchange’s spot, contract, and leveraged trading, as well as fees from Swap, contract, and NFT transactions on Bitget Wallet.The white paper also introduces BGB's future rights plan, which will focus on three parts: on-chain application scenarios, PayFi payment scenarios, and in-platform rights scenarios, allowing BGB to become a mainstream asset deeply integrated into popular public chains and leading DeFi ecosystems.Bitget CEO Gracy Chen stated: "The Bitget team has chosen to proactively destroy over 5 billion USD of platform tokens, fully demonstrating our firm commitment to long-termism. Over the past decade, CEX has played a crucial role in the development of the crypto industry. As more applications and activities gradually migrate on-chain, Bitget will build an integrated ecosystem centered around BGB, continuing to drive innovation and development in the industry."

Michael Saylor: The accounting rules coming into effect next year may enable MicroStrategy to meet the S&P 500 earnings requirements

ChainCatcher news, according to Barrons, MicroStrategy Chairman Michael Saylor did not explicitly state whether the company might be included in the S&P 500 during a recent interview, but he mentioned that, given the optimistic outlook on Bitcoin, MicroStrategy could report billions of dollars in quarterly net income next year due to the increase in the value of its Bitcoin holdings. The accounting rule changes set to take effect in 2025 may allow MicroStrategy to meet the profitability requirements for joining the S&P 500.It is reported that MicroStrategy's traditional software business (its main business before it began acquiring Bitcoin in large quantities in 2020) is relatively small, with a valuation of only about $1 billion. Additionally, this business is currently operating at a loss according to GAAP (Generally Accepted Accounting Principles), making it difficult to meet the inclusion requirements for the S&P 500 index based solely on this. The upcoming accounting rules will adjust the company's Bitcoin holdings from their current undervalued state to fair market value, potentially leading to significant net income growth when Bitcoin prices rise. However, the S&P Global Index Committee decides on S&P 500 index members by invitation, reviewing profitability, market capitalization, and other factors.
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