• BTC Filing using Non-GAAP Methods to Calculate Figures
• Remove BTC Wild Swing Adjustment in Future Filings
• Bitcoin is a blessing and a Curse

The business intelligence firm has reported it used non-GAAP methods of calculating figures for its BTC buys excluding the “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.”

MicroStrategy, Business intelligence firm reportedly is said to have not followed the Securities and Exchange Commission’s accounting practices for their crypto purchases.

The SEC on Thursday released a comment letter.  The regulatory body objected to the Microstrategy reporting information about their Bitcoin purchases.  Microstrategy has reportedly followed non-GAAP, or Generally Accepted Accounting Principles.

The Accounting Principles applied for BTC buys were documented considering, “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets” — essentially, negating some of the effects of the volatility of the crypto market.”

SEC has stated, “MicroStrategy Inc. can’t strip out Bitcoin’s wild swings from the unofficial accounting measures it touts to investors.”

While Microstrategy has stated that ” It believes that these non-GAAP financial measures are also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis.” The SEC reportedly has required that MicroStrategy should “remove this adjustment in future filings.”

In the U.S., the Generally Accepted Accounting Principles, or GAAP, does not provide any rules for reporting the value of the digital assets.

The Nonbinding guidance from the American Institute of CPAs states that companies should classify the currency as an intangible asset, as outlined in ASC 350.

This means businesses that don’t qualify as investment firms would record cryptocurrency at historical cost and then only adjust it if the value declines. Once their holdings get written down, or impaired, companies can’t revise the value back up if the price recovers.

This looks like a new wave of concerns are showing up from the SEC about Accounting Principles to be followed for BitCoin.

Previously, Michael Saylor had stated that, “Bitcoin is a blessing and a curse.”

When asked about whether he was not feeling the cold of the cryptocurrency winter he said, “if you are going to invest in Bitcoin a short-time horizon is 4 years, a mid-time horizon is 10 years and the right time horizon is forever.

Warren Buffet Said, if you wouldn’t hold it for 10 years, you should’nt hold it for 10 minutes.  If you look at the course of over 4-years, no one has ever lost money over 4 years holding Bitcoin. And, if we look at our experience. we started buying at 10,000 dollars and now it is up by a factor of 4.

So, given the right time horizon your fine.  It is a blessing and a curse. The blessing is it makes it the most exciting and interesting thing in the financial universe everywhere in the world. And, the curse is it can induce anxiety for people that have a short attention span or are focused on a narrow time horizon.