Comments on: Cryptocurrency Accounting: Why Net Income and the P / E Multiple Have Become Even More Useless

By: M&I - Brian

M&I - Brian — Sat, 07 Oct 2023 17:02:31 +0000

In reply to Danielle.

Thanks. “Older” is relative… some articles first published on this site in 2007 still get a lot of traffic.

(Also, note that the rules around crypto accounting in the U.S. are now changing, so we’ll update this coverage in the future.)

By: Danielle

Danielle — Thu, 05 Oct 2023 17:44:05 +0000

Thank you for this. I am a bookkeeper and have been wondering the best way to handle these items. This was so helpful. I have several clients who have purchased crypto as well as one who has started mining. I realize this article is older but it helped.

By: M&I - Brian

M&I - Brian — Wed, 10 Aug 2022 19:03:35 +0000

In reply to Denis. I believe the crypto assets should be classified in the same way as discussed here, but companies may count them as "intangibles" to avoid the need to use mark-to-market accounting. Buying mining equipment with USD converted into Bitcoin is the same as any other type of CapEx.

By: Denis

Denis — Sun, 07 Aug 2022 06:12:39 +0000

Bryan,

great article.
What are your thought on a crypto mining company that mines crypto but does not provide any other “bank-like” services?
Would the mined crypto be categorized as “financial assets” or “intangible assets”?
What about if the company converted USD into Bitcoin and bought some mining equipment with it? How would this flow?