SEC Objects to MicroStrategy’s Accounting Adjustment for Its Bitcoin Holdings

SEC Objects to MicroStrategy’s Accounting Adjustment for Its Bitcoin Holdings
Michael Saylor’s MicroStrategy won’t be able to remove swings in the value of its enormous bitcoin holdings from its unofficial accounting measures, according to comment letters released by the U.S. Securities and Exchange Commission.MicroStrategy used non-GAAP rules, or measures that don’t comply with U.S. generally accepted accounting principles, to show what its income would have been if it didn’t have to impair its bitcoin holdings. Bloomberg was the first to report on the comment letters.Under standard accounting rules, the value of digital assets such as cryptocurrencies must be recorded at their cost and then only adjusted if their value is…