Digital currency Bitcoin hits new high before losing S$200 in value in one day

[weijian]

Under GAAP, crypto assets are classified as "intangibles" and is recorded at cost minus impairment. Hence when these volatile assets drop below cost, an impairment is done. However when it goes above that, it has to keep the cost minus impairment value. A "tails I lose, heads I don't win" situation.

Traditional accounting methodology has caught up with non-traditional assets and will be implemented in the near future. The amendments will allow fair value recognition to capture both the upside and downside of price changes for certain crypto assets that meets the criteria.

FASB Issues Final Standard on Crypto Assets

On December 13, 2023, the FASB issued ASU 2023-08,1 which addresses the accounting and disclosure requirements for certain crypto assets. The new guidance requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets.

For all entities, the ASU’s amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those years.

https://dart.deloitte.com/USDART/home/pu...pto-assets

[¯|_(ツ)_/¯]

@wj, agreed 100% that there are enough games available to keep us busy.  like I said many times too, value investing is just a game for me.  if I gain something out of it, that's great! if not, just treat it as paying for entertainment fees (just like going to KTV). 

I started crypto not as a buyer but merely because of practising something that I read in BTC developer books.  Subsequent exposure to BTC when it was ranging 6-12k was also a nice chance to vest.  Again, it was a buy and forget market operation.  About 6 months ago, when BTC was back into play, then I realised that my BTC account was almost emptied.  That was a shocker but nothing worrying for me.  It was a buy and forget market operation and if it's gone then it's gone. 

Luck was on my side and now, all my BTC was returned back into my wallet later and another more luck, BTC zoom past 100k effortlessly.  

Will I buy more? No - it was a buy and forget market operation. 

Will I sell (some)? No - again, it's a buy and forget market operation.

To me, crypto is just part of my investment journey... nothing more and nothing less.  Obviously, I would like to sell my crypto at some point in time.  And, I can tell you when.  It would be when BTC reached $1m.  Oh.... ok, I changed my mind, it would be when BTC reached $500k.  Oh.... ok, I changed my mind again, it would be when BTC reached SGD500k. 

Ok ok. It's just a game and other than the initial analysis and decision to vest as part of learning / financial journey, it's just buy and forget market ops.  What I had learn would had been very very different, if I'm not vested.  For example, I won't had realised that a BTC platform could fold aka my BTC wallet zerolised six month ago.  And, I also won't had imagined that my wallet could be returned.  

This is like a fairy tale in investment world and I experienced it first hand. Was it good or bad?

Good for me.  This is such a powerful way to learn (as part of game) that I will be more careful and take adequate precautions in managing my (main) portfolio - a lesson I could not learn from reading the books. 

---

Enough of BTC. Anyway, not many people brought BTC as it's really too expensive at this moment. Virtual currency is worth virtually nothing.

R&D - I will classified it as an expense for simple reason that the outcome of a successful products required a lot of well aligned CSF and R&D is one part - no doubt - a major part.  Putting R&D into the expense bucket also allow me to have more conservative estimation of a company's profits.  Like what you says.

Again, thank you very much for your and all valuebuddies kind sharing.  

You will not know how much I had benefited from your kindness.  Thank you and wish everyone a successful and enjoyable gaming the investment journey.

Enjoy net-net investing which is my most favorite investment:


Gratitude!

[weijian]

As usual, the idea is simple but execution is the hardest, especially so in a free country with political lines split almost right down in the middle. If only Trump had Xi's privileges...

The last time US had a (temporary) surplus was during Bill Clinton, before George Bush spent it all on the 2nd Gulf War. And a deficit is actually good - it creates more USD, which is the world currency and facilitates trade. The US doesn't need to run a surplus to have any sort of reserve though.

Backlash to crypto-reserve plan raises doubts on its prospects

The US would have to acquire three of the tokens that he wants included in the stockpile. And that’s causing a backlash among both supporters and critics of the notion that the government should be invested in digital assets.

When Trump originally announced plans for a Bitcoin reserve last year, he said it would be based on crypto that the government already held, mostly from assets seized in criminal cases. While the US currently owns about US$16.4 billion worth of Bitcoin and about US$400 million worth of seven other tokens, its known wallets do not currently hold any of the cryptocurrencies known as XRP, SOL and ADA that Trump said on Sunday (Mar 2) that he wants to be included.

“You should only be establishing this kind of thing when you are running a surplus, not a deficit,” said Austin Campbell, a cryptocurrency consultant and former Wall Street trader who is an adjunct professor at New York University’s Stern School of Business. “And if you are running a surplus, set money aside so you can invest it in productive assets growing value over time.”

https://www.businesstimes.com.sg/wealth/...-prospects

[specuvestor]

yes as a reserve currency you don't need to hold a reserve that other countries are holding cause you can print it, as long as the faith in the currency remains which was what Russia tried to destroy by coercing China to sell UST and MBS during GFC (Which Russia sold all but China didn't) and why they have to do the wayang debt-ceiling debate

[¯|_(ツ)_/¯]

Virtual currency is worth virtually nothing - I reminded myself to be careful of any speculation in Crypto.

About one month ago, I started to vest in Cardano (aka ADA). So far, it had been volatile. Result wise, it go up 60% since I vested.

I reminded myself again that this is pure speculative move and would not hesitate to get out in a blink.

Enjoy: why Cardano:
 
Gratitude!

[weijian]

I think I just have to give it to Taylor, a survivor of the ups-and-downs of the technology business world and a true marketer. Good marketers make a ton of money for themselves. The author thinks that Taylor missed his Econs 101 class and that is probably apt. But I also regard him as having earned himself a PHD in the real world (at least surrounded himself with such talent) with "bitcoin yield" and "Bitcoin treasury valuation model".

Bitcoin treasuries

"Bitcoin yield" is not to be confused with the yield earned on your cash flow-generating assets. No, Bitcoin yield is the period-to-period percentage change in the ratio between the company's Bitcoin holdings and its diluted shares. In other words, it's the change in Bitcoin per share.

As for Saylor's Bitcoin treasury valuation model illustrated above (Bitcoin NAV + Bitcoin $ gain x multiple), it's absurd. The premise—that the appreciation of Bitcoin should be treated like recurring profit and capitalized accordingly—is lunacy. It's like saying that because you expect the $500k house you live in (let's say it's your entire net worth) to appreciate to $550k next year, your net worth is not $500k, and not $550k, but a whole $2mn with a 30x multiple on the appreciation. It doesn't surprise me that Saylor believes this nonsense, since he, having missed econ class 101 by the evidence of this clip, thinks that cash, which is priced at the risk-free rate, carries a cost of capital of 15% (then proceeding to botch basic math by saying 12% of $325bn is $32bn).

https://oliversung.substack.com/p/bitcoin-treasuries

[specuvestor]

(Bloomberg) -- Michael Saylor’s once-celebrated Bitcoin experiment is mired in a market backlash, raising questions about the sustainability of the corporate-treasury model he pioneered. 
Shares of Strategy Inc., formerly MicroStrategy, have fallen 15% this month, erasing much of the premium the firm long enjoyed over its Bitcoin holdings. The company, long a bellwether for crypto sentiment, is now drawing fresh skepticism.
At the center of the concern is the firm’s financing tactics. Strategy’s new preferred stock — billed as its main vehicle for future Bitcoin purchases — has drawn tepid demand. A recent sale raised just $47 million, well short of Saylor’s ambition for blockbuster capital raising. To make up the shortfall, the company has returned to common-share issuance, despite earlier pledges to limit dilution. That reversal has rattled investors.
The stakes extend far beyond one company. Saylor’s playbook — raise debt and equity, buy Bitcoin, watch the market assign a premium, repeat — inspired a wave of treasury firms that collectively hold more than $108 billion, or 4.7% of Bitcoin’s supply, according to BitcoinTreasuries.net. If Strategy’s premium collapses, confidence in the model itself could unravel.
“The decreasing premium is a natural reaction to competition and alternative ways for traders to gain exposure to digital assets,” said Jake Ostrovskis, principal analyst on Wintermute’s OTC Desk. “Additionally, walking back guidance around no share issuance under 2.5x mNAV has forced short-term reassessments of the corporate strategy.”

[¯|_(ツ)_/¯]

Stock markets continue to break ATH.
Similiarly, crypto had been breaking (and continue to try) ATH too.

Just wanted to record some crypto history here, in particular ETH.

Unlike BTC, ETH is commonly use as platform for Smart contracts.  BTC could not enforce/capture the smart contract as it's basically a digital currency.  However, ETH protocol (and infrastructure) allow it to store and execute (enforce) smart contracts.

With Trump administrations pushing for stable coins, naturally, ETH (being the largest and stable platform for smart contract) would deem as the crypto that benefits from these US government initiatives.

Sometime in Jun 2025, I decided to buy ETH at 2,800 and sold a few weeks later at 3,800.  I sold ETH not to take profits but because I thought that there is another better way to profits from the rise of ETH... 
which is buying a ETH treasury company.

Enjoy bmnr:


Gratitude!


Reminder to myself: virtual currency is worth virtually nothing.