{"id":181650,"date":"2021-02-05T01:00:28","date_gmt":"2021-02-05T01:00:28","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=181650"},"modified":"2021-02-04T23:36:50","modified_gmt":"2021-02-04T23:36:50","slug":"deloitte-releases-its-own-bitcoin-guide-on-the-back-of-microstrategys-playbook","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/deloitte-releases-its-own-bitcoin-guide-on-the-back-of-microstrategys-playbook\/","title":{"rendered":"Deloitte releases its own Bitcoin guide on the back of MicroStrategy’s “playbook”"},"content":{"rendered":"

The guide from the \u201cbig four\u201d accounting firm wants to cater to new clients and businesses considering a Bitcoin investment.<\/span><\/p>\n

Guide for Bitcoin<\/b><\/h2>\n

Deloitte, the international accounting part of the reputed \u201cbig four,\u201d released its <\/span>Bitcoin guide<\/strong><\/span><\/a> earlier this week on the back of enterprise business analytics firm MicroStrategy<\/a> putting out its own \u201cplaybook\u201d for companies considering investing a part of their treasury funds in the asset.<\/span><\/p>\n

It started off its guide with a mention of the risk involved in punting on the infamously volatile and \u201crisky\u201d crypto sector, \u201cTolerance for risk, depending on the stake and type of digital asset, may well have to be modified and periodically adjusted.\u201d<\/span><\/p>\n

Some of these risks, the firm pointed out, were the amount of free cash on hand after a business purchased Bitcoin and the <\/span>range<\/span><\/i> of risk a firm was comfortable with. On the other hand, some considerations for firms were the use of digital assets in everyday operations, such as payrolls and vendor payments, and even cross-border transactions.<\/span><\/p>\n

In terms of actually holding Bitcoin on one\u2019s books, Deloitte cautioned that there was currently no legal ability for companies to accurately mark up the value of a company\u2019s crypto.\u00a0<\/span><\/p>\n

However, it added that if the company believed fair value to be more reflective of the economics of its investment, it had the flexibility to provide disclosures that it believed were more meaningful to its investors.\u00a0<\/span><\/p>\n

This meant that when it came to providing investors with information about the value of a cryptocurrency (in this case, Bitcoin), a firm could \u201cflag\u201d Bitcoin prices at a given time on a given exchange, as the asset is traded on multiple exchanges and all prices are merely rough guidances.<\/span><\/p>\n

\u201cBut 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\u2019s digital asset holdings,\u201d said Deloitte.\u00a0<\/b><\/p><\/blockquote>\n

The firm also mentioned several other legal, regulatory, and financial clauses before a firm considered investing in Bitcoin or other crypto assets, as seen in its <\/span>15-page guide<\/a><\/strong> here.<\/span><\/p>\n

How MicroStrategy\u2019s play kickstarted an era<\/b><\/h2>\n

Companies around the world are now said to be considering purchasing Bitcoin for their treasuries to combat a bleak economic outlook and to counteract low yields across traditional equities.<\/span><\/p>\n

MicroStrategy made the news last year after picking up over $1.14 billion worth of Bitcoin across three separate purchases. The firm initially purchased $250 million of Bitcoin in August followed by a $175 million purchase in September, before raising $650 million in a convertible note in December to purchase more of the asset.<\/span><\/p>\n

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Don't miss this session at #WorldNow<\/a> "Overview of Strategic Vendors & Offerings in the #Bitcoin<\/a> Marketplace – @binance<\/a> "<\/p>\n

Join now: https:\/\/t.co\/fgKtL7s9PY<\/a> pic.twitter.com\/yk609EA9zA<\/a><\/p>\n

— MicroStrategy (@MicroStrategy) February 4, 2021<\/a><\/p><\/blockquote>\n