Accounting for Bitcoin (BTC)
Bitcoin is the most common crypto on a company's balance sheet — often held as a treasury reserve — and the rules for accounting for it changed materially. This page covers how BTC is classified, measured, and taxed, and how CryptaCount keeps it on the books.
General information, not accounting or tax advice. Confirm the right treatment for your facts with your auditor or advisor.
What Bitcoin is (for accounting)
Bitcoin (BTC) is a fungible, cryptographically secured digital asset on its own distributed ledger, not issued by any entity. Those characteristics put it squarely in the scope of the current crypto accounting standards — and, importantly, it carries no enforceable claim on any underlying asset, which is what determines its measurement.
How Bitcoin is classified and measured
- US GAAP — BTC is an intangible asset in the scope of ASC 350-60 (ASU 2023-08), so it's now measured at fair value each period, with gains and losses in net income. This replaced the old cost-less-impairment model. → Crypto accounting under US GAAP →
- IFRS — BTC is an intangible asset under IAS 38 (cost model with IAS 36 impairment, or the revaluation model where an active market exists). → Crypto accounting under IFRS →
- Not cash — despite its use in treasuries, BTC isn't cash or a cash equivalent under accounting rules.
Cost basis and tax
Disposals of Bitcoin (selling, swapping, spending) are generally capital gains events for tax, calculated using your jurisdiction's cost-basis method. Bitcoin uses proof-of-work, so there are no staking rewards — but mining rewards are income at receipt. Cost-basis methods → · Trading tax →
What to watch with Bitcoin
Under fair-value measurement, BTC's price volatility now flows through earnings every period — so treasury holders need reliable period-end valuations and clean records behind every movement.
How CryptaCount handles Bitcoin
- Ingests all your BTC activity across wallets and exchanges
- Applies your cost-basis method and computes gains
- Measures BTC at fair value each period under your chosen standard, posting the remeasurement
- Posts journal entries to your ERP with a full audit trail
See the sub-ledger → · Crypto assets →
General information, not accounting or tax advice. Verify with your auditor or advisor.
FAQ
As an intangible asset — and under US GAAP (ASU 2023-08) it's now measured at fair value each period with gains and losses in net income. Under IFRS it's an IAS 38 intangible (cost or revaluation).
No. Despite being used in treasuries, Bitcoin isn't cash or a cash equivalent under accounting rules.
Disposals are generally capital gains events, using your jurisdiction's cost-basis method. Mining rewards are income at receipt. See your country guide.
Yes. It measures BTC at fair value each period under your chosen standard and posts the remeasurement, with a full audit trail.