Yet if the value of bitcoin drops, the company must write down the value of their holdings as an impairment charge. Outside the United States, where companies operate under a separate set of rules, crypto is accounted for differently. In some other cases, companies that record crypto as intangible assets can gauge the value of their crypto holdings at market value. Most of the publicly listed companies that hold bitcoin on their balance sheets are specialist cryptocurrency or blockchain firms, according to Bitcoin Treasuries. The amount paid depends on how long they have held the coin and the market value at the time of the transaction.

Source: Standard Digital March 08, 2021 06:45 UTC