Key takes
- Earlier this week, Tesla reported a $ 600 million profit related to Bitcoin Holdings. This accounts for more than one -quarter of the fourth quarter profit.
- The company has been able to reserve the benefits of Bitcoin with the change of the Crypto Assets' financial accounting standards committee guidelines.
- MicroStrategy may be responsible for billions of dollars tax due to changes in the same accounting rules.
The recent change to accounting rules may have helped Tesla (TSLA) Bitcoin (BTCUSD) to bring a $ 600 million profit, but in the same rule, the tax bill of hundreds of millions of dollars. May be left on Microstratea (MSTR).
About 26 % of Tesla's net income in the fourth quarter of 2024 came from Bitcoin Holdings. The company was able to reserve the interests derived from these bitcoin by changing the Financial Accounting Standards Committee (FASB) guidelines for cryptocounter assets.
For a company owning Bitcoin, the meaning of a new rule
With a new rule or ASU 2023-08, companies with Bitcoin Holdings can explain the value from the mark to the market, depending on where they are traded in the market.
“The main advantage of the new rules of FASB on the new mark of the company's digital assets to the market is to enable companies to provide the value of digital assets in real time,” said Miller & Company LLP Managing Partner & CPA Pole.・ Miller said INVESTOPEDIA.
Under the previous FASB guidelines, bitcoin was treated as an “intangible asset of an indefinite level” and forced to write down its value when the price fell, but unless the assets are sold, they are profitable. I prevented recording.
The old system frustrated Michael Sailor, the founder of the micro strategy.
Why Microstratege lands a huge tax bill
Bitcoin was crying last year and is getting stronger this year. Based on the new rules, MicroStrategy's Bitcoin Purchase SPREE has left about $ 18 billion unrealized bitcoin. Wall Street Journal Recently reported. This may create a billion dollar tax bill equivalent to MicroStrategy.
This re -classification of this cryptographic asset is vulnerable to 15 % tax on the interests of Bitcoin, which is not realized in the Inflation Reduction Law of the Inflation Reduction Law, to the profit of Bitcoin. In other words, the company may face taxes from 2026 without selling a single coin. This is the risk acknowledged by recent regulations.
“As a result of the establishment of IRA on January 1, 2025 and the adoption of ASU 2023-08, we have been taxing in 2026 to provide relief unless the proposed CAMT regulations are revised.” He says.
Micro strategies are one of the largest corporate Bitcoin, but other listed companies such as marathon digital (mara), Riot Platforms (RIOT), Semler Scientific (SMLR), etc. are purchased Bitcoin Purchase Playbooks. Follow you and may be affected by the change of this rule.
