Impact of New Accounting Rules on Tesla and MicroStrategy’s Bitcoin Holdings

Reported about 6 hours ago

A recent accounting rule change has allowed Tesla to report a $600 million profit from its bitcoin holdings, representing about 26% of its fourth-quarter income. Conversely, this rule poses a risk for MicroStrategy, potentially leading to billions in taxes due to unrealized gains. The new guidelines enable companies to value their bitcoin in real-time rather than only when sold, which could result in a significant tax bill for MicroStrategy starting in 2026.

Source: YAHOO

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