Accounting for Bitcoin at Block

Name: Accounting for Bitcoin at Block (English version)
SKU: 125072

Wang, Charles C.Y.; Kim, Seil; Sa-Pyung Shin, Sean

Product #:125072

Supplier:Harvard Business Impact

Discipline:Accounting

Details:Case (PDF) • 15 pages • 2025-02-24 (Rev: 2025-08-08)

Subjects:

Accounting Business models Finance and investing Corporate strategy Cryptocurrencies Blockchain

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This case explores Block Inc.'s accounting practices for Bitcoin transactions and their impact on financial reporting. Following a 10% stock price drop after missing revenue estimates in Q3 2024, Block faced scrutiny over its Bitcoin-driven revenue model. Unlike Coinbase, which reports net revenue, Block recognizes Bitcoin sales on a gross basis, creating discrepancies in financial comparisons. Moreover, the adoption of ASU 2023-08 introduced fair value accounting for Bitcoin holdings, leading to earnings volatility. This case examines whether Block's accounting approach accurately reflects its business model and how investors should assess Bitcoin-related revenue and valuation amid cryptocurrency market fluctuations.