If MicroStrategy adopts new accounting rules in its Q4 financial report, its Bitcoin holdings will be updated to approximately $8 billion.

MicroStrategy's quarterly results may become more volatile under recently approved accounting rule changes that require digital assets to be valued at market prices. Prior to the correction, MicroStrategy had to take impairment charges to write down its value when the price of Bitcoin fell, but was unable to confirm any gains. It is reported that the new rules will come into effect in 2025, but companies may now consider adopting the rules sooner to reap the potential benefits. If MicroStrategy decides to make adjustments to its fourth-quarter 2023 earnings, the company will have a multi-billion dollar surge in Bitcoin on its balance sheet following recent purchases and a nearly 60% rise in Bitcoin during that period. Analysts predict that investors could see a loss of about $5.8 million when MicroStrategy reports earnings later on Tuesday. It is worth mentioning that MicroStrategy's stock price has surged more than 300% since July 2020, while the S&P 500 index has risen about 60% and the technology-heavy Nasdaq 100 index has risen 70% during the same period about. The value of the company’s Bitcoin holdings this year will be updated from $1.8 billion to approximately $8 billion, more in line with the company’s current market capitalization. Additionally, the company added 30,905 Bitcoins in the fourth quarter, worth more than $1 billion as of December 31. Meanwhile, forecasts show MicroStrategy expects revenue of about $133 million, little changed from the same period last year. Going forward, with revenue growth flat, MicroStrategy's profits are likely to be more affected by Bitcoin's price swings, analysts said. (Bloomberg) In December last year, it was reported that the United States would introduce the first version of the accounting system for encrypted digital currencies. According to the new FASB system, cryptocurrencies will be measured at fair value. MicroStrategy, Tesla and Block are required to disclose high and low data on their cryptocurrency holdings.