Bitcoin Mining Company President Speaks About BTC: “New Rules May Attract Corporates to the Market”

In an interview, Kent Halliburton, President of Bitcoin Mining Company Sazmining, expressed optimism about the impact of new fair value fiscal rules on Bitcoin adoption.

New Financial Rules May Attract Corporate Companies to the Market

Halliburton believes that these rules, which allow companies to report crypto assets at fair market value, will be extremely positive for diversifying treasury holdings into digital assets.

Halliburton highlighted that in 2021, Michael Saylor held a symposium for corporate leaders interested in adding Bitcoin to their balance sheets.

The high participation in the symposium showed that institutional interest was strong. However, it was clear that current fiscal rules were a significant barrier to adoption.

The rules, recently approved by the Financial Accounting Standards Board, a regulatory body in the United States, will be officially published by the end of 2023 and implemented in 2025.

While the new method of finance does not address concerns about Bitcoin’s price volatility, it does allow companies to reflect both upward and downward price movements.

Previously, only depreciations were taken into account, adjusting for price decreases but not increases. Fair market value provides a more accurate representation of an asset’s current value.

With these financial rules, Halliburton believes that companies now have the same incentives to hold Bitcoin as individuals. Halliburton predicts that companies will direct some of their treasury assets to Bitcoin, similar to what individuals do.

However, the timing of companies adjusting their strategies will depend on Bitcoin’s price movement. If companies sense an impending bull run, they may be more aggressive in acquiring bitcoin before the rules go into effect in 2025.

*This is not investment advice.

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