Post
Topic
Board Economics
Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
by
The Pharmacist
on 23/01/2022, 07:26:01 UTC
The only possible adjustment is downward, but the price shoots, there is no way to impact positively the valuation until there is a sell.
And as Micheal Saylor told us they are never going to sell his bitcoin, the benefit will be.. never registered on the balance sheets.
I don't understand what you said in the above statement, and one reason for my confusion is that what Michael Saylor says about what he's going to do with anything MSTR owns (bitcoin included) has nothing to do with accounting principles.  The only thing that matters is whether any bitcoin is sold and profits/losses are realized, i.e., what MSTR does and not what it or Saylor says.

And if mark-to-market accounting has to be used, it doesn't even matter if bitcoin is sold or not.  It'll be treated as an appreciating or depreciating asset based on what the market dictates.

normies
Can you define that term in the context of this discussion?  I'm really curious.