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For a U.S. public company applying the fair-value rules in ASU 2023-08, changes in Bitcoin’s price can flow into reported net income and change the balance-sheet value of its holdings. Those valuation gains and losses do not, by themselves, add cash or require a cash payment. The practical effect on cash reserves depends on whether the company sells, lends, or pledges Bitcoin, what obligations it must pay, and whether it can obtain financing.

How Bitcoin price changes reach reported earnings

Under U.S. GAAP, ASU 2023-08 requires qualifying crypto assets within its scope to be measured at fair value at each reporting date. Changes in fair value are recognized in net income, and the standard requires separate presentation of qualifying crypto assets and related gains or losses. Bitcoin price movements can therefore make reported results more volatile for companies using this treatment. The rule applies to qualifying assets and issuers within its scope; it is not a universal accounting rule for every company or jurisdiction.

The adoption date matters. Strategy says it adopted ASU 2023-08 on January 1, 2025, while Block says it early adopted in the fourth quarter of 2023. Strategy reported that adoption increased the volatility of its financial results. A reader comparing issuers should check each company’s accounting policy and adoption date rather than assume that all Bitcoin-related figures were produced under the same method.

Before adopting the standard, the filings describe an impairment approach in which a price decline could reduce Bitcoin’s carrying value, while a later recovery generally was not recognized until the asset was sold. Strategy reported $4.06 billion in cumulative Bitcoin impairments through December 31, 2024 under that prior accounting approach. That historical amount is not directly comparable to post-adoption fair-value gains or losses: the methods recognize price changes differently.

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What company filings show—and what they do not

Recent filings illustrate how price moves can appear in individual companies’ earnings, but they are examples rather than a portfolio-wide measure of Bitcoin’s effect on corporate results.

Company and reporting period Disclosed Bitcoin-related result Context
Block, Inc., 2025 Form 10-K $55.9 million remeasurement loss in 2025; $420.9 million remeasurement gain in 2024 Block distinguishes Bitcoin held as a treasury investment from Bitcoin held briefly to facilitate customer transactions.
MARA Holdings, Inc., year ended December 31, 2025 $422.2 million decrease in the change in fair value of Bitcoin holdings MARA also describes selling some Bitcoin for operating expenses, lending Bitcoin, and pledging Bitcoin in connection with borrowing.

These are issuer-reported figures for their stated periods, not independent market statistics. They should not be treated as directly comparable without considering accounting adoption, the purpose and size of holdings, and each company’s financing and liquidity arrangements. The cited filings do not establish a harmonized statistic for how Bitcoin volatility affects corporate earnings or reserve adequacy overall.

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Why a reported gain is not cash in the bank

A fair-value gain can increase reported net income without generating a cash receipt; a fair-value loss can reduce net income without creating an immediate cash payment. The accounting entry reflects a change in the measured value of the asset. Cash changes when the company conducts a transaction or meets an obligation—for example, by selling Bitcoin, borrowing against it, paying expenses, or servicing debt.

Bitcoin holdings therefore are not automatically equivalent to cash and cash equivalents. Turning them into usable funds may require a sale or other transaction, and lending or pledging them can limit access to the assets or add financing risks. The consequences depend on transaction terms, custody, taxes, financing access, and the company’s contractual obligations; a reported valuation change alone does not establish a company’s tax outcome or solvency.

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How holdings can interact with a company’s cash needs

Strategy: a reserve alongside Bitcoin holdings

Strategy says its Bitcoin does not generate cash flows on its own. It describes a management-designated USD Reserve intended to support preferred-stock dividends and interest on debt, and disclosed that the reserve held $2.25 billion as of February 13, 2026. That figure is a company-specific reserve for stated purposes, not a general benchmark for how much cash a company should hold.

Strategy warns that a significant Bitcoin price decline or other adverse factors could make financing more difficult. If its reserve were depleted and financing unavailable, the company says it might need to sell Bitcoin to meet obligations, potentially at unfavorable prices. This is a disclosed risk scenario, not a prediction that every company holding Bitcoin will face forced sales.

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MARA: treasury asset, operating liquidity, and financing

MARA says it retains most of its Bitcoin as a treasury asset and an available source of liquidity. Its filing also describes selling some Bitcoin to fund operating expenses, lending Bitcoin, and pledging Bitcoin in connection with borrowing. Those uses show how a holding can be connected to operations and financing, but do not make all holdings equivalent to cash or freely available without risk.

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How to assess a Bitcoin-holding company’s liquidity

A company’s Bitcoin balance alone cannot answer whether it can pay upcoming bills. A more useful comparison considers the same reporting date and examines:

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  • Accounting and timing: the applicable accounting regime, the company’s adoption date, and where fair-value changes appear in its statements.
  • Cash versus Bitcoin: the amount and fair value of Bitcoin holdings relative to cash and cash equivalents.
  • Obligations: near-term operating needs, debt interest and maturities, and declared or cumulative preferred dividends.
  • Liquidity plan: cash reserves, access to debt or equity financing, planned sales, and any lending or collateral arrangements.
  • Purpose of the Bitcoin: whether it is held as a treasury investment, used in customer operations, or deployed in another activity.

Strategy, Block, and MARA illustrate different accounting histories and treasury uses. Their figures are not a like-for-like measure of financial strength: each company’s obligations, asset restrictions, financing access, and purpose for holding Bitcoin matter alongside its reported earnings.

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