More firms set to add Bitcoin to balance sheets after major rule change
The rules allow crypto-holding companies to now report their paper gains, not just losses, which industry observers say could give more firms confidence to buy.
Bitcoin (BTC) and crypto may soon see another mass wave of adoption by U.S.-based firms, after a new accounting rule change that lets companies more accurately reflect the value of their crypto holdings.
Cory Klippsten, the CEO of Bitcoin-only exchange Swan Bitcoin, told Cointelegraph that Bitcoin-holding companies like MicroStrategy and Tesla, which both had to report impairment on their holdings, “can now more accurately reflect their Bitcoin investments’ true value.”
The new Financial Accounting Standards Board (FASB) rules released on Dec. 13 that come into effect on December 2024 see the estimated market value of crypto held by companies represented accurately on companies’ accounting books by allowing them to record when they’re holding assets at a gain.
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