MicroStrategy is reporting earnings later today but has so far held back on adopting a new U.S. accounting standard for valuing digital assets.

Why it matters: The publicly traded bitcoin whale had led the charge for the change, one that would boost the book value of its own bitcoin stockpile today by billions.

Catch up quick: The enterprise software company and its chairman, bitcoin proselytizer Michael Saylor, have rallied U.S. publicly traded companies over the years to follow his lead in buying bitcoin for their balance sheets.

• The Financial Accounting Standards Board (FASB) in a December update gave Saylor what he wanted — a change in how digital assets are valued — that he said would "facilitate the adoption of BTC."

The big picture: MicroStrategy, and its shareholders, would benefit from the update in more ways than one, according to analysts who cover the company, and they are keen to see its first-quarter earnings showing that change.

• Crypto exchanges like Coinbase, mining outfits like Marathon Digital, and fringe experimenters like Block Inc. voluntarily adopted the FASB standard before it kicks in at the end of this year.

Between the lines: With the change, bitcoin can be accounted for at fair value — meaning what's it worth in the current market — previously it could only be marked down.

• The better BTC looks on the balance sheet, the more companies would buy it, boosting the orange coin 🍊, and, MicroStrategy's stock, theoretically. (See: Charted)

Zoom in: Benchmark's Mark Palmer said he expects the company to adopt the standard because it would make it look good — the company in its 2023 annual report estimated the change would boost its retained earnings balance by more than $3 billion.

• Palmer added that that would improve its chances of being included in a broad market index like the S&P 500.

"It would be very strange at this point if the company does not adopt [it]," Lance Vitanza, a TD Cowen analyst, said last week in an interview with Axios.

• "If this accounting standard that's changed is not good enough for MicroStrategy, then why should anyone else consider it?"

The intrigue: The answer may have to do with another area of accounting: tax treatment, specifically those attached to the 2022-enacted Inflation Reduction Act, notes Francine McKenna's Deep Quarry, which first observed MicroStrategy's reluctance to adopt the guidance early.

• The company's annual report said of the risk tied to its accounting of unrealized gains on its bitcoin holdings: "If we become subject to these new taxes under the IRA for these or any other reasons, it could materially affect our financial results, including our earnings and cash flow, and our financial condition."

What we're watching: The company is expected to have its earnings call today at 5pm ET.

MicroStrategy's shares are trading at a smaller premium to its bitcoin holdings than before, according to TD Cowen analyst Lance Vitanza.

Context: MSTR, in Wall Street speak, is a leveraged play on bitcoin.

• MicroStrategy's bitcoin buying started in August 2020, when the company took out debt, convertible or otherwise, to fund its purchases.

Of note: At peaks, the market put a 140% premium on MSTR's bitcoin holdings, but that's down to around 90%, Vitanza said last week.

Behind the scenes: He's headed to Las Vegas this week for MicroStrategy's World 2024 conference; he's looking for more details about the company's plans to be a "bitcoin development company."

• He also wants to know if MicroStrategy plans to buy more bitcoin, and how.
• Vitanza wants to know if there will be another at-the-market offering filing, which would signal more BTC buying.

💭 Our thought bubble: 🤞Let's hope whatever happens in Vegas is communicated to the rest of us.

Crypto was a surprising bright spot in an otherwise slow fintech fundraising market, FT Partners data shows.

Why it matters: Investors are willing to place more — albeit, smaller — bets on crypto startups after funding plunged last year.

Driving the news: Crypto startups garnered a record 300 capital raises — the highest number of deals in the quarter.

• The median financing size for crypto deals in Q1 was $3.7 million, still down significantly from the $6.2 million at the sector's height in Q2 2022.

By the numbers: According to the FT Partners Q1 2024 FinTech Insights report, private financing to fintech startups fell to its lowest quarterly dollar volume in six years.

• Those companies raised a total of $9.2 billion over 946 deals in the first quarter, representing a 19% year-over-year decline in venture dollars (excluding Stripe's $6.5 billion fundraise from last March).

Half of all deals in the first quarter were for $5 million or less, compared with 46% in 2023 and 35% in 2022.

🚫 The developer behind privacy-focused Wasabi Wallet and zkSnacks banned U.S. residents from using its products. (CoinDesk)

😨 Avraham Eisenberg, who was found guilty of exploiting Mango Markets in a federal court this month, was charged with possession of child pornography. (Karlstack)

🧭 "Yuga lost its way" a co-founder of the NFT giant admitted as he announced further layoffs Friday. (@CryptoGarga)

👀 Bitcoin traders are watching the U.S. Treasury this week. (CoinDesk)

Marshall Mathers, or the rapper, Eminem, is the new face of Crypto.com.

• That's Slim Shady... to those who know.

What's happening: His new ad for the crypto platform aired Saturday during the NBA playoff game at the branded arena in Los Angeles.

• Eminem posted on social media, "You know what it's always been" and "FFTB."

Between the lines: FFTB or "Fortune Favors the Brave," is the Crypto.com slogan.

• Matt Damon said it in 2021 for charity.

Flashback: Eminem isn't new to crypto.

• He collaborated with Snoop in 2022 to put out a Bored Ape music video.

💭 Our thought bubble: Eminem, unlike other celebs that were once caught in the SEC's net, flagged the ad as an ad in his social media post.

• Some degens are clearly fans.
• 🟣 P.S. The Lakers beat the Nuggets.