Why did a new Tesla base helped get $ 600 million in Bitcoin’s gains but microstrate may cost billions
Main meals
- Tesla earlier this week had reported a $ 600 million profit associated with Bitcoin pregnant women, which represents more than a quarter of her fourth profits.
- The company managed to book these profits derived from Bitcoin thanks to the change in the guidelines of the Financial Accounting Standards Council for encryption assets.
- Microstrategy can be responsible for billions of dollars in taxes due to the same change as an accounting base.
A recent change in the rules of accounting has helped achieve $ 600 million profit on Bitcoin (btcusdTesla’s possessions (Timing), But it is possible that the base will leave the same base Microstrategy (Mstr) With a tax bill with billions of dollars.
Nearly 26 % of the Tesla’s net income for the fourth quarter of 2024 came from Bitcoin’s possessions. The company was able to reserve these profits from Bitcoin due to the change in Financial Accounting Standards Council (FASB) guidelines for encryption assets.
What does the new base for bitcoin own companies mean
The new rules or ASU 2023-08 allow companies that have Bitcoin’s holdings of their value on A. Mark to the market Basis or depending on the place where the market is trading.
“The basic advantage of the new FASB rules related to the brand base to the new market for companies’ digital asset property is that it will allow companies to provide the value of their digital assets in the actual time, “said Paul Miller. Investopedia.
Under the previous FASB guidelines, Bitcoin was dealt with as “unforgettable assets”, forcing companies to write their value when prices decreased but prevented from gains unless the original is sold.
The old system thwarted the founder of Microstrategy, Michael Sailor, who argued that he was on the way to adopting bitcoin as the origin of the Treasury.
Why microstrategy may drop a huge tax bill
Bitcoin was on a tear last year and remains strong this year. Based on the new rules, Microstrate’s Bitcoin purchased a splash Leave it with about $ 18 billion of unreasonable bitcoin gains, Wall Street Magazine I mentioned recently. It can create a tax bill worth billions of dollars for Microstrategy.
This re -classification of encryption assets on his books made Microstrategy may be vulnerable to a 15 % tax on Bitcoin gains are not achieved Under the law to reduce inflation The minimum alternative tax for companies (Camt). This means that the company may face taxes on these gains starting in 2026, even without selling one currency – a risk that it confessed to in a modern organizational file.
As a result of the age of IRA and we adopted for ASU 2023-08 on January 1, 2025, unless the proposed regulations are revised regarding Camt to provide relief, we may be subject to the company’s alternative tax in the tax years 2026 and beyond.
Although Microstrategy is still one of the largest bitcoin owners for companies, other listed companies, such as Marchhon Digital (Mara), Riot platforms (Riot), Seemler Scientific (SmlrPlaybook book to buy Bitcoin and can be affected by this base change.
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2025-02-01 03:04:00
