Bloomberg Tax
Feb. 9, 2021, 7:48 PM

Tesla Bitcoin Bet Exposes Limits of Crypto Accounting Rules

Nicola M. White
Nicola M. White

For years, U.S. accounting rulemakers have rejected calls to write accounting rules for digital assets like Bitcoin, saying too few companies make significant investments in them. Now enter Elon Musk.

Musk’s Tesla Inc. announced Monday that it had invested $1.5 billion in the volatile cryptocurrency, and overnight the conversation changed. Tesla’s investment, the largest for a U.S. business, brings Bitcoin into the mainstream and reveals the digital currency hole in the U.S. accounting rulebook.

The electric car maker’s disclosure came on the heels of software company MicroStrategy Inc.'s December issuance of $650 million in convertible bonds to buy and hold ...

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