SEC rejects MicroStrategy‘s Bitcoin accounting practices: Report By

Business intelligence firm MicroStrategy reportedly acted contrary to the Securities and Exchange Commission’s (SEC‘s) accounting practices for its crypto purchases.

According to a Bloomberg report, a comment letter from the SEC released Thursday showed that the regulatory body objected to MicroStrategy reporting information related to its (BTC) purchases based on non-Generally Accepted Accounting Principles (GAAP). The business intelligence firm has been reporting that it used these methods of calculating figures for its BTC buys, excluding the “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.” Essentially, this negates some of the effects of the volatility of the crypto market.