MicroStrategy Says It Supports FASB's Proposed Cryptocurrency Accounting Rules

MicroStrategy said in an open letter on Monday that it supports a proposal by the U.S. Financial Accounting Services Board (FASB) that would allow companies to use fair value accounting for cryptocurrencies held on their balance sheets. MicroStrategy is the largest Bitcoin listed company holder (approximately 140,000). Based on the current market fair price, 140,000 BTC is equivalent to nearly 4 billion US dollars. But under current accounting rules known as the "accounting model for intangible assets with indefinite useful lives," the company must use the original purchase price and then record an accumulated impairment charge. That means its Bitcoin holdings are worth just $2 billion on its balance sheet, half its fair market value.
FASB (United States Financial Accounting Standards Board) issued a proposal on March 23, 2023, proposing new accounting standards for encrypted assets, and will seek public advice on this proposal on June 6. If the proposal is passed, It will become the first clear accounting standard for encrypted assets in the US accounting standards, and it will play an immeasurable positive role in promoting the encryption industry.
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