3 ms·

Can anyone explain this ? > Bitcoin-related impairment of $51M

• kinghajj 5y ago
  https://news.ycombinator.com/item?id=28936340 https://news.ycombinator.com/item?id=28936340 > No, Bitcoin and other cryptocurrencies in the US are booked as indefinitely lived intangibles. > That means that if the asset falls below their most recently booked price at any point in the quarter, they are required to book an impairment charge in the amount of the drop. If it goes up, they cannot book the profit until they sell.
• matco11 5y ago
  It means that they looked at the price of Bitcoin and saw that, if they had sold at that price, they would have lost $51mm. This does not mean that they sold the Bitcoins, but that they had to set aside a reserve of money for a potential future loss on their Bitcoins. This has nothing to do with their propensity to sell their Bitcoins or their expectations on the price of Bitcoins. Instead, it has to do with the way accounting principles work and the need to mark-to-market financial investments.
  • m00dy 5y ago
    thanks.