More firms are poised to add Bitcoin to their balance sheets after a major rule change.

Bitcoin (BTC) and other cryptos may soon see another wave of mass adoption by US-based companies after a new accounting rule change that allows companies to more accurately reflect the value of their crypto holdings.

Corey Clipston, CEO of Bitcoin-only exchange Swan Bitcoin, told Cointelegraph that companies that hold bitcoins such as MicroStrategy and Tesla both had to report impairments on their holdings “so they can now more accurately reflect the true value of their bitcoin investments.”

“This change is critical for many companies, not just those focused primarily on Bitcoin, but encouraging more mainstream corporate adoption.”

The new Financial Accounting Standards Board (FASB) rules issued on December 13, which will take effect in December 2024, will allow companies to accurately represent the market value of crypto when they hold their assets. with benefit.

In the past, the crypto held by companies was only exposed to losses due to the decrease in the value of the crypto on the books, which could not be increased until the sale, even if the value increased during the holding.

Clipston added that companies can now use bitcoin as a “strategic financial asset” and report gains and losses on their values, a feature that will help drive adoption.

Markus Thielen, head of Matrixport Research and author of Crypto Titans, told Cointelegraph that the rule change reflects corporate interest in including crypto on company balance sheets.

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“Digital assets are becoming an increasingly important part of financial statements,” Thielen said, adding that companies should be more confident when evaluating their crypto holdings.

“This is an impressive proof that digital assets have proven themselves financially.”

Others were happy with the rule change. David Markus, co-creator of Facebook's binned stablecoin project, posted on December 13 on X (Twitter) that the new rules are “really a big deal” as they remove “a huge barrier that hinders corporations holding Bitcoin against them.” balance sheet.”

You might think this is a small mathematical change that doesn't mean much. It's a really big deal. This will remove a major obstacle standing in the way of corporations holding #Bitcoin on their balance sheets. 2024 will be a historic year for $BTC. https://t.co/gV0KRISt8B

— David Marcus (@davidmarcus) December 13, 2023

Following the FASB's approval of the rules on September 6, Mark Palmer, senior equity research analyst at Berenberg Capital, said that crypto-holding companies “will be able to avoid the poor optics created by handicap losses under the FASB's rules.”

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