What “Fair Value” Actually Means for the Bitcoin Sitting on a Company's Balance Sheet
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When a publicly traded company reports the value of the bitcoin it holds on its balance sheet, the specific accounting method behind that number matters enormously for how it moves from quarter to quarter. Under the fair-value standard that now applies broadly to US public companies holding crypto assets, a company must record its bitcoin holdings at their current market price as of each reporting date, recognizing any increase or decrease in that value directly in its reported earnings for the period.
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