.MicroStrategy said it would revise the way it presents its bitcoin holdings in its financial results following objections from the SECGov. By mikeybellusci
MicroStrategy CEO Michael Saylor ’s MicroStrategy won’t be able to remove swings in the value of its enormous bitcoin holdings from its unofficial accounting measures, according to comment letters released by the U.S. Securities and Exchange Commission.
MicroStrategy used non-GAAP rules, or measures that don’t comply with U.S. generally accepted accounting principles, to show what its income would have been if it didn’t have to impair its bitcoin holdings. Bloomberg was the first to report on the comment letters. Under standard accounting rules, the value of digital assets such as cryptocurrencies must be recorded at their cost and then only adjusted if their value is impaired, or goes down. But if the price rises, that does not get reflected until an asset is sold.that “...we object to your adjustment for bitcoin impairment charges in your non-GAAP measures. Please revise to remove this adjustment in future filings.
In mid-December, MicroStrategy replied to the SEC that it would “revise its disclosures of non-GAAP measures in future filings to remove the adjustment for impairment losses and gains on sale related to bitcoin, as requested by the Commission,”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Former Dallas SEC lawyer faces repeat charges in penny stock scam that netted $1.3 millionA former Dallas Securities and Exchange Commission lawyer who went to prison a decade ago in a penny stock scam is being accused of a repeat offense in an...
Read more »
SEC Will Focus on Regulating Crypto Exchanges in 2022, Says Gary GenslerGary Gensler said the SEC should put digital asset exchanges under its scope and further monitor them in 2022.
Read more »
The SEC has issued $2.4B in crypto-related penalties since 2013A new report by Cornerstone Research shows that the SEC has launched a total of 97 actions against crypto players worth $2.4 billion since 2013.
Read more »
SEC rejects proposed spot Bitcoin ETF from First Trust and SkyBridgeThe US Securities and Exchange Commission has shot down another spot bitcoin exchange-traded fund proposal, this time from First Trust and SkyBridge Capital.
Read more »
SEC blocks Anthony Scaramucci’s Bitcoin fundThe SEC rejected Anthony Scaramucci’s proposal to launch a Bitcoin-based investment fund, saying it would be too risky for investors
Read more »
SEC rejects Skybridge's application for spot Bitcoin ETFThe SEC rejected a proposed rule change from NY Stock Exchange Arca to list and trade shares of the First Trust SkyBridge Bitcoin ETF Trust.
Read more »