Deloitte released a Bitcoin guide based on the newly released Microstrategy playbook and aims to cater to new clients and businesses considering a BTC investment so let’s read more in today’s BTC news.
The guide from the accounting company wants to cater to new clients and companies that consider investing in Bitcoin. Deloitte released its Bitcoin guide earlier this week inspired by the business analytics company MicroStrategy and launched its own playbook for companies that consider investing a part of their treasury funds in the asset. It started off the guide with a mention of risk involved in the volatility and the risky crypto sector:
“Tolerance for risk, depending on the stake and type of digital asset, may well have to be modified and periodically adjusted.”
Some of these risks were the amount of free cash on the hand after a business purchased BTC and the range of risk a company is comfortable with. On the other hand, some considerations for companies were the use of digital assets in daily operations like vendor payments, payrolls, and cross-border transactions. In terms of holding BTC on one’s books, Deloitte noted that there was no legal ability now for companies to mark up the value of the company’s crypto. It added that if the company believes in fair value to be more reflective of the economics in the investment, it has the flexibility to provide disclosure that it believes is much more meaningful to the investors.
— MicroStrategy (@MicroStrategy) February 4, 2021
This means that when it comes to providing investors with info on the value of the cryptocurrency, a company should flag BTC prices at a given time on a given exchange as the asset is traded on a few exchanges and all prices are only rough guidances:
“But with the knowledge of the number of coins or other digital assets held, investors can arrive at an approximate determination of the valuation of the company’s digital asset holdings.”
The company noted other regulatory and legal clauses before the company is considered investing in BTC or other assets. Companies across the world are now considering buying Bitcoin for their treasuries to combat bleak economic outlooks and to fight against low yields across traditional equities. Microstrategy made the news in 2020 after it picked up over $1.14 billion worth of BTC on three separate occasions. The company purchased $250 million of BTC followed by a $175 million purchase in September. This week, the company launched a “playbook” conference that boasted over 400 business attendees and addressed common concerns about the investments in Bitcoin, the legal and tax structure, and the benefits of digital gold.
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