TechFlow reported, citing The Block, that Bernstein research analysts have revealed Strategy (formerly MicroStrategy) will see its balance sheet increase by $12.75 billion after adopting the FASB's new fair value accounting standard. Previously, companies were required to record impairment losses on digital assets when prices declined, but could not revalue them upward unless they sold the assets.
Starting January 2025, Strategy will adopt the Financial Accounting Standards Board (FASB)'s new fair value accounting rules, resulting in a one-time cumulative adjustment of $12.75 billion recorded directly into opening retained earnings. In a report to clients on Thursday, Bernstein analyst Gautam Chhugani stated this change will allow the company to recognize unrealized gains on its Bitcoin holdings for the first time.
