MicroStrategy is undoubtedly one of the first companies that come to mind when Bitcoin is mentioned. MicroStrategy company, whose share prices are parallel to Bitcoin due to the high amount of BTC it holds, is undoubtedly an important company for the market.
Considering that the SEC also has serious effects on cryptocurrencies, the fact that the SEC and MicroStrategy are in the same sentence scares investors.
In the last hours, news of the SEC’s rejection of MicroStrategy’s approach to accounting for Bitcoin has been on the agenda like a bombshell.
According to the news from Bloomberg, the SEC made the following statement: “We object to your adjustments to Bitcoin impairment prices in your non-GAAP (accepted accounting principles) measures. Please review this regulation for future applications.”
By accounting rules, the value of products such as cryptocurrencies should be recorded at the cost of their purchase, and adjustments should only be made if their value drops and is sold. However, if the price rises otherwise, this adjustment cannot be reflected until the asset is sold. For this reason, there is a problem in the reporting method.
Although this news reflected negatively on the market at first, it was noted that MicroStrategy acknowledged this situation in December and said that they would fix it in future reports.
MicroStrategy CEO Michael Saylor is known to make positive comments about Bitcoin at every opportunity. Speaking about BTC recently, Saylor emphasized that he never had any thoughts of selling BTC and that price drops were not scary.