{"id":27668,"date":"2025-05-20T12:31:44","date_gmt":"2025-05-20T12:31:44","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=27668"},"modified":"2025-05-20T12:31:44","modified_gmt":"2025-05-20T12:31:44","slug":"mstrs-new-bitcoin-accounting-standard-to-drive-financial-swings-make-earnings-volatile-says-expert-after-lawsuit-hits-strategy","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=27668","title":{"rendered":"MSTR&#8217;s New Bitcoin Accounting Standard To Drive &#8216;Financial Swings,&#8217; Make Earnings &#8216;Volatile,&#8217; Says Expert After Lawsuit Hits Strategy"},"content":{"rendered":"<div>\n<p><strong>Michael Saylor<\/strong>\u2018s <strong>Strategy Inc.<\/strong> (NASDAQ:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/MSTR#NASDAQ\">MSTR<\/a>), formerly <strong>MicroStrategy<\/strong>, was hit with a lawsuit, specifically after adopting the new accounting rules of reporting cryptocurrency assets on its financial statements. This move could make the <strong>Bitcoin <\/strong>(CRYPTO: <a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/quote\/btc\/usd\">BTC<\/a>) treasury company\u2019s earnings more volatile, highlights an expert.<\/p>\n<p><strong>What Happened:<\/strong> Before the implementation of the new accounting rule, crypto assets like Bitcoin were reported on the financial statements under the existing intangible asset guidance.<\/p>\n<p>According to <strong>Arthur Azizov, <\/strong>the founder and investor at B2 Ventures, after the implementation of the new accounting rules, Strategy may face both \u201coperational and financial downstream risks,\u201d in case of falling Bitcoin prices.<\/p>\n<p>Under the old rules, if the intangible asset\u2019s price fell below its acquisition price, an impairment loss was recorded in the statements, and even if the price went back up in other quarters, the write-down could not be reversed.<\/p>\n<p>However, the new \u2018Accounting Standards Update (ASU) No. 2023-08, Intangibles\u2014Goodwill and Other\u2014Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets\u2019 requires companies to measure crypto assets at fair value each reporting period.<\/p>\n<p>Reporting the assets based on their fair value will reflect the fluctuation in the price of the asset in the financial statements of the company in &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/general\/market-summary\/25\/05\/45515900\/mstrs-new-bitcoin-accounting-standard-to-drive-financial-swings-make-earnings-volatile-say\" alt=\"MSTR's\" new bitcoin accounting standard to drive swings make earnings says expert after lawsuit hits strategy>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Michael Saylor\u2018s Strategy Inc. (NASDAQ:MSTR), formerly MicroStrategy, was hit with a lawsuit, specifically after adopting the new accounting rules of reporting cryptocurrency assets on its financial statements. This move could make the Bitcoin (CRYPTO: BTC) treasury company\u2019s earnings more volatile, highlights an expert. What Happened: Before the implementation of the new accounting rule, crypto assets [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-27668","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27668"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27668\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}