Corporations Must Value Crypto Holdings at Fair Value Under New FASB Standard

As of the first quarter of 2025, corporations are required to measure their crypto holdings at fair value each reporting period, with gains and losses recognized directly in their net income statements, according to the Financial Accounting Standards Board's (FASB) Accounting Standards Update 2023-08.

The new standard, which took effect in fiscal years beginning after December 15, 2024, replaces the old impairment-only model that forced write-downs but blocked write-ups on appreciated holdings.

Strategy, formerly known as MicroStrategy, held 528,185 Bitcoin with a total cost basis of $35.6 billion as of March 2025, the first quarter reported under the new fair value standard.

The fair value of that position stood at $43.5 billion, calculated at an average acquisition cost of $67,457 per Bitcoin.