The Financial Accounting Standards Board (FASB) has approved rules for accounting for the fair value of companies’ cryptocurrency holdings, which will go into effect in 2025. Fair value is the estimated price of an asset that takes into account current market value and other decisive elements. The new accounting method will increase volatility in the earnings of companies with large crypto holdings but allow them to record financial recoveries from increasing crypto prices. Companies can begin using fair-value accounting for their crypto immediately if they wish to. The rule change will affect crypto-native companies like Coinbase, investment companies, and companies like MicroStrategy and Tesla that hold large amounts of crypto. To accommodate the changes, crypto will become a line item under “intangible assets” in financial accounts. FASB member Christine Botosan said that the decision was easy to make as it both takes cost out of the system and improves the decision usefulness of information. MicroStrategy chairman Michael Saylor wrote on X that the fair value accounting upgrade eliminates a major impediment to corporate adoption of Bitcoin as a treasury asset.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	neutral
Relevance Score	10
People	Michael Saylor, Christine Botosan
Companies	MicroStrategy, United States Generally Accepted Accounting Principles (GAAP), Coinbase, Financial Accounting Standards Board (FASB), Tesla
Currencies	US Dollar, Coinbase Wrapped Staked ETH, Ethereum, Bitcoin, microstrategy
Securities	None