Close Menu
CryptoHoppers.comCryptoHoppers.com
    What's Hot

    TON locks up 25% of token supply to make tokenomics predictable

    October 24, 2023

    Liam Payne: Remembering a Pop Star, Futurist, and Web3 Pioneer Gone Too Soon | NFT CULTURE | NFT News | Web3 Culture

    October 18, 2024

    The Complex Journey of the Pepe Meme: Controversy, Crypto, and Redemption? | NFT CULTURE | NFT News | Web3 Culture

    May 16, 2023
    Facebook X (Twitter) Instagram
    • Privacy Policy
    • Get In Touch
    Facebook X (Twitter) Instagram
    CryptoHoppers.comCryptoHoppers.com
    • News

      GENIUS Act Passes House with 308 Votes, Could Redefine Stablecoins and Supercharge U.S. Crypto

      July 18, 2025

      Bitcoin May Freeze Satoshi’s Wallet Over Quantum Threat

      July 16, 2025

      Bitcoin under pressure as Satoshi-era whale sells: Will BTC drop to $108K?

      July 15, 2025

      BlackRock’s Bitcoin ETF Blows Past $80,000,000,000, Faster Than Any Other Exchange-Traded Fund in History: Bloomberg Analyst

      July 14, 2025

      Will Pi crash or rally in 2025?

      July 11, 2025
    • Technology

      Windtree Becomes First NASDAQ Firm to Add BNB to Its Balance Sheet

      July 18, 2025

      What is AI16Z – AMBCrypto

      July 17, 2025

      Bonk gains 15% to lead memecoins as altcoins eye rally

      July 16, 2025

      Comment on Trump Firing Powell Would Set ‘Very Bad Precedent,’ Warns Pompliano by Powell's Replacement? Fed Chair Succession Process Underway

      July 15, 2025

      Hungary Bans Unlicensed Crypto Platforms: Revolut and Bitstamp Suspend Services

      July 14, 2025
    • Learn/Guide

      $10.7 trillion Charles Schwab to launch spot Bitcoin, Ether trading, eyes stablecoin market entry

      July 18, 2025

      Russia’s largest bank Sberbank to roll out Bitcoin, crypto custody services to catch up with global banks

      July 17, 2025

      Trump Media files trademarks for Truth Social AI and AI Search

      July 16, 2025

      DOJ and CFTC drop investigations into Polymarket

      July 15, 2025

      FUNToken Isn’t Just Trending – It’s Consolidating Power in Telegram, One User at a Time

      July 14, 2025
    • NFTs

      1mouth Analog: miirror’s Raw Leap from Digital to Handmade Chaos | NFT CULTURE | NFT News | Web3 Culture

      May 9, 2025

      NFTCulture Expands Into TCGs with Cardcore.xyz: Where Digital Collectibles Meet Competitive Play | NFT CULTURE | NFT News | Web3 Culture

      May 8, 2025

      From Moonshots to Broken Links: The Rise and Fall of CloneX | NFT CULTURE | NFT News | Web3 Culture

      April 24, 2025

      Pacific Spirit: Vinyl Meets Code in a Groundbreaking Generative Drop on Art Blocks | NFT CULTURE | NFT News | Web3 Culture

      April 16, 2025

      Daizen: Elevating the NFT Multiverse on Apechain Blockchain | NFT CULTURE | NFT News | Web3 Culture

      December 5, 2024
    • Regulation

      SEC Drops Binance Lawsuit: How Regulatory Clarity Could Spark a BNB Price Rally

      May 30, 2025

      Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections

      March 31, 2025

      Utah Moves Closer To Bitcoin Reserve As Bill Advances To Senate Standing Committee

      February 23, 2025

      Bitcoin ETFs In Focus As Kansas Senator Proposes Up To 10% Pension Fund Allocation

      January 26, 2025

      MicroStrategy May Face Tax Issues Over $19 Billion Unrealized Bitcoin Gains: Report

      January 25, 2025
    • Business

      Sri Lanka’s E-commerce Platform Kapruka to Introduce Crypto Payments

      November 17, 2024

      Leading Eastern European Exchange Exmo Sells Business in Russia, Belarus

      November 16, 2024

      Bank of Russia to Launch Digital Ruble Payment Infrastructure by July 2025

      November 15, 2024

      Bitcoin Mining Company Mara Holdings Now Holds 26,747 Bitcoin: Q3 Earnings Report Reveals

      November 14, 2024

      Brazil Prepares to Let Tradfi Institutions Embrace Crypto

      November 13, 2024
    • Live Pricing
    CryptoHoppers.comCryptoHoppers.com
    Home » MicroStrategy to Report Bitcoin Holdings Quarterly without Impairment Losses
    News

    MicroStrategy to Report Bitcoin Holdings Quarterly without Impairment Losses

    September 10, 20233 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    MicroStrategy to Report Bitcoin Holdings Quarterly without Impairment Losses
    Share
    Facebook Twitter LinkedIn Pinterest Email


    The decision by the FASB to allow fair-value accounting for digital assets is a huge step forward for companies like MicroStrategy.

    Software developer MicroStrategy Inc (NASDAQ: MSTR) is set to report its Bitcoin (BTC) holdings quarterly without recognizing impairment losses in case of crypto price declines during the reporting period. This development comes as a result of the Financial Accounting Standards Board (FASB) approving new guidelines.

    Berenberg, a respected investment bank, has brought attention to this development as reported by Coindesk, suggesting that it could be a game-changer for MicroStrategy and other companies with substantial BTC holdings.

    Microstrategy’s Impairment Dilemma

    MicroStrategy’s foray into Bitcoin began with an ambitious goal to devote a significant amount of its treasury reserves to the cryptocurrency. While this strategy has gained admiration for its pioneering spirit, it has also exposed the company to the inherent volatility of the crypto market.

    According to the report, MicroStrategy has reported cumulative impairment losses of $2.23 billion since adopting its Bitcoin acquisition strategy in August 2020. The most significant of these losses, amounting to $917.8 million, was recorded in the second quarter of 2022.

    This massive loss became the focal point of news coverage of MicroStrategy’s earnings, creating an impression that the company’s intrinsic value had been severely impacted, despite this not being the case.

    Berenberg’s report highlights the disconnect between MicroStrategy’s true financial position and the perception created by impairment losses. This disconnect can be attributed to the traditional accounting standards that require companies to recognize impairment losses when the market value of an asset, such as Bitcoin, falls below its carrying value.

    The recent decision by FASB to allow companies like MicroStrategy to report their Bitcoin holdings quarterly without recognizing impairment losses during short-term price fluctuations addresses this issue directly.

    This means that MicroStrategy and similar companies can now report the fair value of their Bitcoin holdings at the end of each fiscal quarter, providing a clearer picture of their financial health.

    Immediate Impact and Adoption Timeline of FASB’s New Rules

    The decision by the FASB to allow fair-value accounting for digital assets is a huge step forward for companies like MicroStrategy. MicroStrategy’s executive chairman, Michael Saylor, praised the regulatory change, saying it “eliminates a major impediment to corporate adoption of Bitcoin as a treasury asset.” This demonstrates the significance of the change in promoting the widespread adoption of cryptocurrencies inside the corporate sector.

    While the official implementation of the new rules is expected in 2025, companies will have the option to adopt them earlier. Berenberg’s report suggests that MicroStrategy plans to exercise this option, indicating the company’s eagerness to align with the latest accounting standards and take advantage of the benefits it offers.

    Meanwhile, Berenberg maintains a positive outlook on MicroStrategy. The bank has a buy rating on MicroStrategy shares, with a price target of $510. As of the latest available data, MicroStrategy’s stock closed at $353.07 on Thursday, reflecting investor interest in the company’s future prospects.

    next

    Bitcoin News, Cryptocurrency News, News


    Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

    Thank you!

    You have successfully joined our subscriber list.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    GENIUS Act Passes House with 308 Votes, Could Redefine Stablecoins and Supercharge U.S. Crypto

    July 18, 2025

    Bitcoin May Freeze Satoshi’s Wallet Over Quantum Threat

    July 16, 2025

    Bitcoin under pressure as Satoshi-era whale sells: Will BTC drop to $108K?

    July 15, 2025

    BlackRock’s Bitcoin ETF Blows Past $80,000,000,000, Faster Than Any Other Exchange-Traded Fund in History: Bloomberg Analyst

    July 14, 2025
    Top Posts

    Chemists Turn To Blockchain To Unravel The Origins of Life

    January 27, 2024

    Building Your Crypto Network: A Strategic Guide to Industry Connections

    February 24, 2025

    Arbitrum to unlock over $2 billion in tokens this month

    March 2, 2024

    Welcome to CryptoHoppers.com! Stay informed with the latest updates, trends, and insights from the dynamic world of cryptocurrencies. From Bitcoin to altcoins, blockchain technology to decentralized finance (DeFi), we cover it all. Discover expert analysis, market trends, regulatory developments, and exciting innovations shaping the crypto industry.

    Top Insights

    GENIUS Act Passes House with 308 Votes, Could Redefine Stablecoins and Supercharge U.S. Crypto

    July 18, 2025

    Bitcoin May Freeze Satoshi’s Wallet Over Quantum Threat

    July 16, 2025

    Bitcoin under pressure as Satoshi-era whale sells: Will BTC drop to $108K?

    July 15, 2025
    Advertisement
    Demo
    CryptoHoppers.com
    Facebook X (Twitter) Instagram
    • News
    • Technology
    • Learn/Guide
    • Regulation
    • NFTs
    • Business
    • Live Pricing
    © 2025. Designed by CryptoHoppers.com.

    Type above and press Enter to search. Press Esc to cancel.