Bitcoin in Corporate Balance Sheets: Accounting and Treasury Strategy

Introduction: The Bitcoin Treasury Strategy

MicroStrategy leads the way: when Bitcoin becomes a strategic corporate treasury asset.

Since MicroStrategy announced in August 2020 the acquisition of 21,454 bitcoins for $250 million, the idea of integrating Bitcoin into corporate treasury has gained legitimacy. By December 2025, Strategy (formerly MicroStrategy) holds over 446,000 BTC, valued at more than $37 billion.

This strategy, once considered eccentric, now attracts the attention of CFOs, accountants, and executives worldwide. In France, a few pioneering companies are exploring this path, but accounting and tax questions remain complex.

This guide is intended for professionals (CFOs, accountants, executives) wishing to understand the implications of holding Bitcoin on a French company's balance sheet.

Table of Contents

1. Why Companies Buy Bitcoin
2. French Accounting Framework
3. International Comparison
4. Practical Implementation
5. Applicable Taxation
6. Governance and Compliance
7. Risk Management
8. Case Studies
9. FAQ

1. Why Companies Buy Bitcoin

Protection against inflation and diversification: understanding corporate treasury motivations.

1.1 The MicroStrategy/Strategy Approach

Michael Saylor, CEO of MicroStrategy (renamed Strategy in 2024), theorized the approach:

"Cash is a melting position. Inflation erodes 10-15% of the value of cash each year. Bitcoin is monetary energy stored in digital form."

Evolution of Strategy's Holdings:

1.2 Other Companies with Bitcoin Treasury

*Tesla sold 75% of its holdings in 2022

1.3 Motivations

1.4 French Companies Concerned

The phenomenon is still limited in France, but some pioneers exist:

• Crypto sector startups
• Tech companies with long-term vision
• Family holdings
• Companies with excess cash without immediate use

2. French Accounting Framework

Intangible assets and historical cost: decoding accounting treatment under PCG.

2.1 Accounting Classification

In French accounting (PCG - Plan Comptable Général), crypto-assets are generally classified as intangible assets:

"Crypto-assets, in the absence of a specific accounting regime, are recorded according to their nature and the purpose assigned to them by the entity."

Source: ANC, Regulation 2014-03 as amended

2.2 Classification by Use

2.3 Valuation Method

On entry:

• Acquisition cost: Purchase price + ancillary costs

At closing:

• Historical cost method: Maintained at purchase cost
• Impairment provision: If market value < purchase cost

⚠️ Warning: Under French standards, unrealized gains are NOT recorded (prudence principle). Only unrealized losses lead to provisions.

2.4 Standard Accounting Entries

Bitcoin Acquisition:

D 208 "Other intangible assets"          €100,000
    C 512 "Bank"                                   €100,000
(Acquisition of X BTC at rate of €Y/BTC)

Impairment Provision (if decline):

D 6816 "Provision charges"               €20,000
    C 2908 "Intangible asset provisions"           €20,000
(Impairment provision, Dec 31 rate below cost)

Sale with Capital Gain:

D 512 "Bank"                             €150,000
    C 208 "Other intangible assets"                €100,000
    C 775 "Asset disposal proceeds"                 €50,000
(Sale of X BTC with €50,000 capital gain)

2.5 Notes to Accounts

The notes to accounts must mention:

• Nature and amount of crypto-assets held
• Valuation method used
• Associated risks
• Any provisions

3. International Comparison

IFRS, US GAAP, PCG: the FASB revolution changes the game for American companies.

3.1 IFRS Standards

IFRS (international standards) treat crypto-assets differently:

No automatic fair value: Unlike financial assets, crypto is not "fair value through P&L" by default.

3.2 US GAAP Standards and FASB Revolution

In December 2023, FASB (Financial Accounting Standards Board) published ASU 2023-08:

Before (ASC 350):

• Crypto = intangible asset
• Historical cost
• Impairment provision (irreversible)

After (ASU 2023-08, effective 2025):

• Crypto = fair value asset
• Revaluation at each closing
• Gains AND losses in income

💡 Impact: American companies now see unrealized gains in their income. Strategy was thus able to report massive gains in 2024-2025.

3.3 International Comparison

3.4 Implications for Comparables

A French company holding Bitcoin will be less comparable to an American company:

4. Practical Implementation

From board of directors to custodian: key steps to acquiring Bitcoin for your company.

4.1 Acquisition Procedure

Step 1: Strategic Decision

• Presentation to Board of Directors
• Definition of investment policy (max amount, duration, objectives)
• Formal approval (Board/GM minutes per bylaws)

Step 2: Acquisition Channel Selection

Step 3: Custodian Selection

4.2 Institutional Custodian Selection

4.3 Required Documentation

4.4 Stakeholder Reporting

To shareholders:

• Amount invested and current valuation
• Performance vs benchmark
• Identified risks

To auditors:

• Proof of holding (proof of reserves)
• Internal controls on access
• Valuation at closing

5. Applicable Taxation

Corporate tax, deductible provisions, VAT exempt: complete tax overview for French companies.

5.1 Corporate Income Tax (IS)

Capital Gains Treatment:

IS Rates (2025):

5.2 Impairment Provisions

Deductibility of crypto-asset impairment provisions is accepted by tax authorities, subject to:

• Justification of market value at closing
• Probable and non-definitive nature of the loss

5.3 VAT

Crypto-asset transactions are VAT exempt since the ECJ Hedqvist ruling (2015):

Consequence: VAT on related purchases (hardware, consulting) is not recoverable if main activity is crypto buying/selling (exempt activity).

5.4 Territorial Economic Contribution (CET)

• CFE: Applicable if regular activity
• CVAE: On activity value added

For simple treasury holding, no specific CET impact.

5.5 Financial Transaction Tax

Crypto-assets are not subject to financial transaction tax (reserved for large French equity capitalizations).

6. Governance and Compliance

Investment policy, internal control and audit: structuring a robust governance framework.

6.1 Decision Process

Recommended Approval Levels:

6.2 Investment Policy

Standard Content:

CRYPTO-ASSET INVESTMENT POLICY

1. OBJECTIVES
- Preserve purchasing power of excess treasury
- Diversify company assets
- Investment horizon: [X] years minimum

2. SCOPE
- Authorized assets: Bitcoin only / Bitcoin + Ethereum
- Maximum amount: [X]% of liquid assets
- Rebalancing: [Annual / Quarterly / X% threshold]

3. ACQUISITION
- Authorized channels: [List of exchanges/OTC]
- Approval procedure: [Detail]
- Execution: [DCA / Lump sum / Opportunistic]

4. CUSTODY
- Designated custodian: [Name]
- Control procedure: [Detail]
- Backup and recovery: [Detail]

5. DISPOSAL
- Sale conditions: [Treasury needs / Thresholds]
- Required approval: [Level]

6. REPORTING
- Frequency: [Monthly / Quarterly]
- Recipients: [Board, Management, Shareholders]

Approved on [Date] by [Body]

6.3 Internal Control

6.4 External Audit

The statutory auditor must:

1. Confirm existence of crypto-assets (proof of ownership)
2. Validate valuation (reference rate)
3. Assess internal control on access
4. Verify notes disclosures

Accepted Evidence:

• Custodian attestation
• Signed message from held addresses
• On-chain audit (blockchain analysis)

7. Risk Management

Volatility, security, regulation: identify and mitigate risks of a Bitcoin allocation.

7.1 Risk Matrix

7.2 Volatility and Balance Sheet Impact

Stress Scenarios:

7.3 Possible Hedging?

⚠️ Warning: Hedging introduces additional accounting and tax complexity.

7.4 Crypto-Asset Insurance

8. Case Studies

Startup, SME, family holding: concrete examples of Bitcoin integration in balance sheets.

8.1 Case 1: Tech Startup (1-5% Treasury)

Profile:

• Revenue: €5 M/year
• Treasury: €2 M
• Bitcoin allocation: €100,000 (5%)

Recommended Configuration:

• Acquisition via regulated French exchange (Coinhouse, Paymium)
• Custody: Exchange or Ledger Enterprise
• Accounting in 208 (intangible asset)
• Valuation: Historical cost

3-Year Simulation:

8.2 Case 2: Industrial SME (Diversification)

Profile:

• Revenue: €20 M/year
• Treasury: €5 M
• Bitcoin allocation: €500,000 (10%)

Recommended Configuration:

• Acquisition via OTC desk (better execution)
• Custody: Institutional custodian (Fireblocks, BitGo)
• Multisig 2-of-3 (CFO, CEO, custodian)
• Quarterly reporting to Board

Investment Policy:

- Maximum: 10% of liquid assets
- Rebalancing if > 15% or < 5%
- Minimum horizon: 5 years
- Sale authorized only for urgent operational needs

8.3 Case 3: Family Holding (Wealth Strategy)

Profile:

• Type: Family SAS
• Assets: €10 M (real estate, securities)
• Objective: Transmission and diversification

Recommended Configuration:

• Allocation: €1-2 M in Bitcoin
• Custody: Secure self-custody (geographically distributed multisig)
• Potential combination with Pacte Dutreil
• Complete succession documentation

Tax Advantages (Pacte Dutreil applicable under conditions):

• 75% exemption from gift/inheritance tax
• 4-6 year holding commitment

9. FAQ

Q1: Can a French company legally hold Bitcoin?

Yes. There is no prohibition. Crypto-assets are intangible movable property that any legal entity can acquire and hold.

Q2: How to value bitcoins on the balance sheet?

Under French standards (PCG), the historical cost method applies. You keep the acquisition cost on the balance sheet. If the price falls below cost, you can (must) record an impairment provision.

Q3: Are unrealized gains taxable?

No. Only realized gains (upon sale) are subject to corporate tax. Unrealized gains are neither recorded nor taxed under French standards.

Q4: Which accountant to choose?

Look for a firm with documented crypto-asset experience. The "Big Four" have dedicated practices. Specialized firms (Waltio Pro, etc.) can also support companies.

Q5: Should shareholders be informed?

Yes, for significant amounts. Information must appear in the notes to annual accounts and, depending on governance, be communicated at the General Meeting.

Q6: How to secure the company's bitcoins?

Use a regulated institutional custodian or a multisig solution with separation of duties. Avoid leaving large amounts on a standard exchange.

Q7: Does VAT apply?

No. Buying and selling crypto-assets is VAT exempt (ECJ Hedqvist 2015). Warning: this exemption may limit VAT recovery on other purchases.

Q8: What happens if the custodian goes bankrupt?

It depends on the custody legal structure. With a qualified custodian, assets should be segregated and recoverable. Check contractual terms and insurance.

Conclusion

Key Points

Recommendations

For interested companies:

1. Start small: 1-5% of treasury maximum
2. Document everything: Decision, policy, transactions
3. Secure: Qualified custodian or robust multisig
4. Train: Accounting, tax, technology
5. Anticipate: Reporting, audit, succession

For accounting professionals:

1. Follow evolution of standards (IFRS, FASB, ANC)
2. Develop expertise: This subject will grow
3. Support clients in their thinking
4. Alert on risks without discouraging innovation

Related Articles — Institutional Finance

• Crypto-Friendly Banks France 2025
• Institutional Crypto Custody Comparison
• Bitcoin Ethereum ETF France Guide

Sources and References

Accounting Standards

• ANC: Regulation 2014-03 (PCG)
• IFRS: IAS 38 (Intangible assets)
• FASB: ASU 2023-08 (Crypto assets)

Company Data

• Strategy: investor.strategy.com (formerly microstrategy.com)
• Bitcoin Treasuries: bitcointreasuries.net