Bitcoin finally counted at its fair value. If the initial announcement dates from December 2023, it is indeed this December 15 2024 what comes into force : a news accounting rule for companies regarding their reserves in Bitcoin (BTC) and other cryptocurrencies. An update from the Financial Accounting Standards Board (FASB) will allow companies to now take into account the real value of their crypto-assets in their balance sheetand no longer have to retain their purchase value.
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December 15, 2024 marked the entry into force of a new accounting rule from the FASB, allowing companies to value their crypto-assets at their fair value. This reform has been welcomed by industry figures like Michael Saylor, because it transforms calculations of unrealized capital gains into net results.
A change in accounting rule that changes everything for Bitcoin and cryptos
From December 15, 2024, the fiscal years American companies will be able to take into account a updating of accounting standards of the Financial Accounting Standards Board regarding their holdings in cryptocurrencies. Indeed, as journalist Pete Rizzo from Bitcoin Magazine reminds us on Michael Saylor (founder of MicroStrategy) who was enthusiastic about this accounting reform, the latter will make it possible to: Improve the accounting of Bitcoin and other cryptos by requiring that a company evaluate these crypto-assets at their “ fair value » (Fair Value Accounting) each reporting period; That the variations price between two declarations are recorded in net profit ; To have more information provided to investors about a company's crypto-asset holdings.
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The success of Michael Saylor and MicroStrategy's BTC bet will come to light
If Michael Saylor was the first to rejoice in this change in accounting rule – from the very day of its initial announcement by the FASB (December 13, 2023) – is that it will make it possible to transform the calculation of unrealized capital gains into net results for MicroStrategy. The company listed on Nasdaq (MSTR stock), owned 423,650 BTC following his last purchase. Bitcoins acquired for a value of $25.6 billion in successive investments since August 2020, but whose value as of December 16, 2024 (with a Bitcoin price around $105,000) is currently $44.5 billion ! As also enthusiastically celebrates Bill BarhydtCEO of the crypto platform Abrathis change in the FASB accounting rule will promote a even more massive institutional adoption :
“From now on, the whole [des entreprises] of the S&P 500 can hold bitcoins with fair market value accounting treatment. No more permanent discounts! »
Account glasses the balance sheets of companies owning Bitcoin and cryptos during this bull run (bullish movement) which has just been initiated with the election of Donald Trump as President of the United States. However, it should not be forgotten that, when next crypto winter (if the bullish/bearish cycles are to repeat themselves as in the past) the loss of value digital assets will be also taken into account.