Size of MicroStrategy’s Bitcoin Bet Set Off SEC Accounting Alarm

Jan. 25, 2022, 9:45 AM UTC

A growing number of companies invest in Bitcoin but none to the extent of MicroStrategy Inc., which in 2021 announced that buying and holding the volatile digital asset was a core business strategy.

The rare prominence of Bitcoin in the enterprise software company’s mission and the size of its holdings put the Tysons Corner, Va.-based business in a class of its own. That distinction led to the SEC singling out the company among its brethren Bitcoin enthusiasts and rebuking how it used non-GAAP measures, or measures that don’t comply with U.S. generally accepted accounting principles, ...

Learn more about Bloomberg Tax or Log In to keep reading:

Learn About Bloomberg Tax

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools.