MicroStrategy’s Bitcoin Bet on Verge of Accounting Windfall (1)

MicroStrategy Inc. may be at an inflection point when it comes to <-bsp-person state=”{“_id”:”0000018d-7f06-d52b-a3af-fff6c4e10001″,”_type”:”00000160-6f41-dae1-adf0-6ff519590003″}”>Michael Saylor-bsp-person>’s controversial decision almost four years ago to bet the enterprise-software maker’s future on Bitcoin.

Quarterly results will likely get more volatile under a recently approved accounting <-bsp-bb-link state=”{“bbDocId”:”S0KSE0T1UM0W”,”_id”:”0000018d-7f06-d52b-a3af-fff6c4e20000″,”_type”:”0000016b-944a-dc2b-ab6b-d57ba1cc0000″}”>rule change-bsp-bb-link> that requires valuing the digital asset at market prices. Before the revision, MicroStrategy had to take impairment charges to write down the value of its Bitcoin when prices fell but couldn’t recognize any increases. It has until 2025 to implement the change.

If Tysons Corner, Virginia-based MicroStrategy decides to adopt the revision for the fourth quarter, the …