According to the recent Bloomberg report, US accounting standards have given the green light to new regulations on the valuation of cryptocurrencies like Bitcoin and Ethereum. These new accounting rules, set to be released by the end of 2023, will require companies with crypto holdings to record them at their current value, taking into account price fluctuations. This could potentially lead to volatile earnings, but will offer a more precise visualization of company holdings. While these regulations won’t be implemented until 2025, firms do have the option of an early adoption.
But what about some of the accounting gaps which may be advantageous for firms like MicroStrategy, Tesla, and Coinbase, entities with considerable crypto assets? Afterall MicroStrategy has garnered the most votes in the implementation process. All the same, the firm has grappled with accounting gaps in the past; will this development lighten up the situation and help the company overcome its negative market sentiment? The time will tell…
