Earning

Bloomberg: The Canadian crypto industry is learning lessons from the U.S. elections

ChainCatcher news, according to Bloomberg, following the significant success of the cryptocurrency industry in last year's U.S. elections, Canadian digital asset companies have begun to apply the lessons they learned.It is reported that the Canadian crypto industry hopes to see digital assets become a bigger focus in that election, just like in the U.S. In July, Stand With Crypto expanded to Canada, but the Canadian branch does not intend to support candidates in the upcoming elections. Instead, its goal is to "inspire the cryptocurrency advocacy community" and launch a grassroots movement for supporters to engage in dialogue with other Canadians and their parliamentary members.Although cryptocurrency may not be a political focal point in Canada, the country has played a significant role in the industry. The second-largest cryptocurrency, Ethereum, was born in the country, and Canada is home to the world's first Bitcoin ETF. Other issues that the Canadian crypto industry lobbies for include allowing the use of Bitcoin in retirement savings plans and tax-free savings accounts, as well as incorporating crypto into open banking legislation.So far, no political party in the country has supported the industry, but digital asset companies have been trying to position crypto as a way to enhance affordability—an important focus in Canadian politics.

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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