In the past 2 years, crypto has gone from being a speculative interest to being talked about at the board level by the government. Public companies already have sizable Bitcoin reserves, with Strategy (formerly MicroStrategy) leading the way and Tesla, Block, and others following suit.
This shows that digital assets are being used in a common way on balance sheets. CoinGecko keeps track of 125 institutions that hold about 1.66 million bitcoin, which is about 7.9% of the total amount. This shows that this is no longer a fringe policy but a trend that CFOs need to carefully consider.
Why Treasurers Are Revisiting Crypto
Clarity in finances is a big factor. ASU 2023-08 from the FASB says that most crypto assets must be valued at their fair value and any changes must be reflected in earnings. This rule goes into effect for fiscal years starting after December 15, 2024, but early adoption is allowed. This change gets rid of the old impairment-only model that messed up P&L and hidden recoveries.
Even though government policy is very different from venture-style speculation, boards often want to know how early-stage token markets form and what risks they carry. The latest lists of the best crypto presales reveal a clear explanation of how tokens go from being an idea to being listed and from being used by institutions to being available to the public. It breaks down how presales work, how prices change, how cash is made available, and what common warning signs treasurers should keep an eye on. This information can help treasury teams assess whether a digital asset has the stability to ever qualify as a reserve instrument.
Context for investors: Strategy’s aggressive BTC strategy now accounts for over 3% of Bitcoin’s fixed supply, illustrating how fair-value treatment and capital markets access can reshape corporate reserve policy.
Controls That Pass Audit: SOX, Reconciliation, And Fair-Value Updates
Under SOX, internal control over financial reporting must cover the entire asset lifecycle:
Authorization → Execution → Settlement → Custody → Valuation → Disclosure
changed that is tied to ticketed approvals, and daily position checks between on-chain addresses, custodian statements, and the GL. Modern SOX guidelines stress the importance of writing down control designs, testing how well they work, and getting an independent auditor to vouch for them. Digital assets are no different.
With ASU 2023-08, the income statement shows the end-period fair value and the remeasurement that happens during the period. Tesla’s most recent quarter shows what happened: switching to fair-value accounting led to a big increase in the value of its Bitcoin holdings. This is exactly the kind of P&L fluctuations that treasurers need to model and explain to audit committees.
Procurement And Execution: Venue, Banking, And Liquidity
Choosing a venue is a way to control risk. This includes having two sets of keys for each action in the wallet and proof on the blockchain that can’t be controlled for risk. Pick early on whether you want to focus on top-tier exchange liquidity, over-the-counter (OTC) block execution, or broker-routed aggregation with data before and after trades.
Make sure that your banking partners clearly support fiat payment flows that are connected to digital asset activity. Some of them don’t. In your crypto playbook, you should list the counterparty KYC/AML standards, the maximum risk per venue, and any backup venues in case the market gets too stressful.
Accounting, Disclosure, And Tax
Accounting teams need valuation notes that explain where prices come from, how waterfall methods work, and how often controls are done. They also need sensitivity studies that show how earnings change when the market is hit by different shocks. Lastly, they should make disclosure forms that make policy, risk, and asset classification very clear.
When it comes to taxes, the IRS views crypto paid as wages as taxable compensation (W-2), subject to withholding and FICA/FUTA. Paying vendors in crypto also makes taxable events at FMV on the payment date. Processes must accurately record the basis and realization.
If you want to use crypto for operational purposes like payments, loyalty, or settlement, make sure it is separate from your reserve asset policy. Having separate wallets, controls, and accounting treatment will make it easier to reconcile and monitor.
Conclusion
Crypto can be used for operational goals, strategic reserve, or diversification, but only if the governance, controls, and accounts are up to par for investments. Start with a policy that has been passed by the board. Pick institutional-grade custody. Lastly, write down SOX-compliant controls, and work together to prepare the finances, taxes, legal, and IT. The fair-value standard from the FASB gets rid of a big problem in accounting. After that, all that’s left is to improve operations.
