Non-existent million-dollar profits: The accounting trap in new reports
Non-existent million-dollar profits: The accounting trap in new reports
━━━━━━━━━━
⚡️ In 3 seconds
Two major companies, despite a drop in operating income, have recorded massive profits on their balance sheets by relying on Bitcoin price volatility, which has nothing to do with actual product sales
━━━━━━━━━━
📊 Numbers you need to know
• Trump Media, despite a meager operating income of $3 million, reported $409 million in net profit thanks to digital assets
• Sales of mining equipment by Canaan have seen a stunning drop, falling 96% compared to the previous year
• Canaan, despite a sharp decline in revenue, has recorded $8 million in net profit in its records, aided by the fair value of Bitcoin
• Total profit from digital assets for Trump Media alone is estimated at $496 million
━━━━━━━━━━
🔍 What 90% of the media doesn't say
These companies have used accounting standards to "mask" heavy operating losses. In fact, the announced profits are not "cash" but rather "paper profits" resulting from the growth of Bitcoin's price on the balance sheet, which quickly turn into heavy losses with the slightest correction in the cryptocurrency price
━━━━━━━━━━
⚖️ Two sides of the coin
🟢 The institutionalization of Bitcoin on corporate balance sheets as "survival insurance" can strengthen institutional demand in the long term
🔴 The heavy dependence of companies' financial health on the price of Bitcoin significantly increases the risk of a freefall in their stock value in downtrend markets
━━━━━━━━━━
🎯 What does it mean for your wallet?
Do not be deceived by astronomical net profits in the financial reports of crypto-related companies; always check actual cash flow instead of accounting profits
━━━━━━━━━━
How long do you think this "volatility-based accounting" model can keep the stock prices of these companies high?
📌 To avoid falling into the trap of deceptive financial reports, save this post and send it to your investor friends
#Bitcoin #Investment #Financial_Report #Cryptocurrency
━━━━━━━━━━
⚡️ In 3 seconds
Two major companies, despite a drop in operating income, have recorded massive profits on their balance sheets by relying on Bitcoin price volatility, which has nothing to do with actual product sales
━━━━━━━━━━
📊 Numbers you need to know
• Trump Media, despite a meager operating income of $3 million, reported $409 million in net profit thanks to digital assets
• Sales of mining equipment by Canaan have seen a stunning drop, falling 96% compared to the previous year
• Canaan, despite a sharp decline in revenue, has recorded $8 million in net profit in its records, aided by the fair value of Bitcoin
• Total profit from digital assets for Trump Media alone is estimated at $496 million
━━━━━━━━━━
🔍 What 90% of the media doesn't say
These companies have used accounting standards to "mask" heavy operating losses. In fact, the announced profits are not "cash" but rather "paper profits" resulting from the growth of Bitcoin's price on the balance sheet, which quickly turn into heavy losses with the slightest correction in the cryptocurrency price
━━━━━━━━━━
⚖️ Two sides of the coin
🟢 The institutionalization of Bitcoin on corporate balance sheets as "survival insurance" can strengthen institutional demand in the long term
🔴 The heavy dependence of companies' financial health on the price of Bitcoin significantly increases the risk of a freefall in their stock value in downtrend markets
━━━━━━━━━━
🎯 What does it mean for your wallet?
Do not be deceived by astronomical net profits in the financial reports of crypto-related companies; always check actual cash flow instead of accounting profits
━━━━━━━━━━
How long do you think this "volatility-based accounting" model can keep the stock prices of these companies high?
📌 To avoid falling into the trap of deceptive financial reports, save this post and send it to your investor friends
#Bitcoin #Investment #Financial_Report #Cryptocurrency
Tested record of “Market news” posts: 126 posts: BTC 24h later averaged +0.50% vs +0.17% for any hour (p = 0.16) — not distinguishable from chance. Full record
Persian original · View this post on Telegram ↗ · Open in the archive · 💬 Discuss in the Coin_Kurd Telegram group · Educational, not financial advice.