{"id":397405,"date":"2022-01-22T01:00:00","date_gmt":"2022-01-21T22:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-rejects-microstrategys-bitcoin-accounting-practices-report\/"},"modified":"2022-01-22T01:00:00","modified_gmt":"2022-01-21T22:00:00","slug":"sec-rejects-microstrategys-bitcoin-accounting-practices-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-rejects-microstrategys-bitcoin-accounting-practices-report\/","title":{"rendered":"# SEC rejects MicroStrategy’s Bitcoin accounting practices: report"},"content":{"rendered":"

“# SEC rejects MicroStrategy’s Bitcoin accounting practices: report <\/strong>”
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Business intelligence firm MicroStrategy reportedly acted contrary to the Securities and Exchange Commission\u2019s accounting practices for its crypto purchases.<\/p>\n

According to a Bloomberg report, a comment letter from the SEC released Thursday showed<\/a> the regulatory body objected to MicroStrategy reporting information related to its Bitcoin (BTC) purchases based on non-GAAP, or General<\/a>ly Accepted Accounting Principles. The business intelligence firm has been reporting<\/a> it used these methods of calculating figures for its BTC buys excluding the \u201cimpact of share-based compensation expense and impairment losses and gains on sale from intangible assets\u201d \u2014 essentially, negating some of the effects of the volatility of the crypto market.<\/p>\n

GAAP rules are seemingly not designed for reporting the value of cryptocurrencies. However, MicroStrategy has purchased 124,391 BTC as of Dec. 30, representing more than $4.7 billion in value across several buys totaling roughly $3.8 billion since August 2020. The company reported it used non-GAAP practices to exclude \u201ccumulative impairment losses\u201d from the cost and based the value of its holdings on the market price of 1 BTC at 4:00 EST on the last day of each period.<\/p>\n

MicroStrategy said following a BTC purchase in July 2021 that it “believes that these non-GAAP financial measures are also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis.” The SEC reportedly said<\/a> MicroStrategy should “remove this adjustment in future filings.\u201d<\/p>\n

Related: <\/em><\/strong>MicroStrategy CEO won\u2019t sell $5B BTC stash despite crypto winter<\/em><\/strong><\/p>\n

The report came as shares of MicroStrategy fell more than 17.8% in the last 24 hours to reach a six-month low price of $375. The drop may have been affected by BTC also falling to a six-month low as the crypto asset dipped under $38,000. <\/p>\n