Breaking: MicroStrategy Replies To FASB Standards To Update Bitcoin Holdings

Bitcoin News: MicroStrategy Inc (NASDAQ: MSTR) on Monday submitted a letter responding to the Financial Accounting Standards Board (FASB)’s proposed accounting standards for crypto assets. MSTR in response supported the authority’s quest to back fair value accounting for Bitcoin and other cryptos.

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MicroStrategy To Increase Its Crypto Holding?

As per MicroStrategy, it is the largest public company holder of Bitcoin. MSTR revealed that as of March 31, 2023, it is holding 140K Bitcoins (approx worth $3.78 billion on 22 May 2023). It mentioned that the company bought these BTC at an original cost basis of $4.17 billion.

The market value of MSTR’s Bitcoin holdings stood at around $3.986 billion. This is twice the amount it carried in its BTC on the consolidated balance sheet. MicroStrategy supporting the FASB proposed air value model mentioned that it would enable them to provide investors with more relevant information.

Bitcoin price is dealing with increased selling pressure over the past 7 days. BTC is trading at an average of $27,036, at the press time. Its 24 hour trading volume is up by 27% to stand at $10.4 billion.

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In the response, MSTR gave a nod to FASB’s intent to make the scope criteria narrow initially in spite of expanding range of crypto assets in the market. However, it believes that there are various complexities linked to non-fungible or wrapped tokens and more.