Key Points:
In response, the corporation backed the authority’s efforts to encourage fair value accounting for Bitcoin and other cryptocurrencies.
According to MicroStrategy, it is the biggest public firm holding Bitcoin. MSTR reported that it has 140,000 Bitcoins as of March 31, 2023. It said that the corporation purchased these Bitcoin for $4.17 billion at the time of purchase.
“We appreciate the rigorous process the FASB is undertaking,” the company said in a letter.
The corporation must utilize the initial purchase price and then record cumulative impairment charges using current accounting standards known as the indefinite-lived intangible asset accounting model. It implies its bitcoin assets are only reflected on its balance sheet at $2 billion, or half its fair market worth.
MSTR’s Bitcoin assets were valued at about $3.986 billion at the time. This is more than double the amount it had in its Bitcoins on the consolidated financial sheet. MicroStrategy, which supports the FASB’s proposed air value model, said that it would allow them to deliver more relevant information to investors.
“Reporting crypto asset holdings under a fair value model, as proposed by the FASB, would enable us to provide investors with a more relevant view of our financial position and the economic value of our bitcoin holdings, which in turn would facilitate the ability of investors to make informed investment and capital allocation decisions,” the company added.
The FASB decided on the proposal last year, and the amendments are now out for public comment.
Despite the market’s increasing spectrum of crypto assets, MicroStrategy supported FASB’s intention to first confine the scope criteria. Yet, it argues that there are several complications associated with non-fungible or wrapped tokens, among other things.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…
Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…
Discover the success story of a New York tech entrepreneur who made $72M from a…
Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…
With the platform facing a cracked whip, Trump Media company is expanding into new business…
Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…
This website uses cookies.