Bloomberg: The new accounting system is expected to turn MicroStrategy from a loss to a profit next year

ChainCatcher news, according to Bloomberg, MicroStrategy's stock performance over the past two years has outperformed almost all large U.S. stocks, including Nvidia. Its co-founder and chairman Michael Saylor's unconventional decision to buy Bitcoin four years ago to hedge against inflation has driven a rise of over 1700%. MicroStrategy has shifted from using cash flow to issuing convertible notes to purchase Bitcoin and plans to explore other ways to fund more purchases. Saylor stated that he is essentially borrowing money at a 1% interest rate to buy Bitcoin.

Bloomberg expects that the new accounting rules next year will turn the loss-making MicroStrategy into a profitable company, as Bitcoin assets will be revalued at market value, potentially leading to a net profit of $2 billion for the company next year, compared to a loss of about $200 million this year.