Although in some countries such as El Salvaldor crypto/bitcoin is considered a legal tender and is considered cash equivalent, and may be recorded as current assets. However, based on generally accepted accounting principles, because Bitcoin and Altcoins are intangible and cannot be felt or touched,
in the balance sheet crypto will be recorded and classified as Intangible Assets, so a group with patents, goodwill, copyrights, franchises and trademarks. So the value of Bitcoin/crypto is recorded according to the cost basis, or the costs incurred to own crypto (purchase price). And if the company buys 1000 BTC Bitcoin when the price is $50k and the current Bitcoin price is $23k then the company will lose $27k per Bitcoin, bringing the company's total loss to $27 million, and of course it will have a big impact on the income statement, Cases like this also happened to MicroStrategy which reported a loss of $170 million as a result of the decline in the value of Bitcoin.
in the balance sheet crypto will be recorded and classified as Intangible Assets, so a group with patents, goodwill, copyrights, franchises and trademarks. So the value of Bitcoin/crypto is recorded according to the cost basis, or the costs incurred to own crypto (purchase price). And if the company buys 1000 BTC Bitcoin when the price is $50k and the current Bitcoin price is $23k then the company will lose $27k per Bitcoin, bringing the company's total loss to $27 million, and of course it will have a big impact on the income statement, Cases like this also happened to MicroStrategy which reported a loss of $170 million as a result of the decline in the value of Bitcoin.
