accounting for cryptocurrency mined by a miner?

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accounting for cryptocurrency mined by a miner?
How should bitcoin obtained from mining for bitcoin miners be recognized in accounting? Should mining costs be capitalized into the initial cost of bitcoin? Or should fair value be used as the initial cost?


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That’s a bit tricky tbh. I would consider it under income account since it more of is a service you are providing to the network and the mined coin is basically your reward. You would then be able subtract the expenses, etc. This means you pay income tax altogether on your income. Another way would be to treat it as income and then adjust entries to convert to asset and treat changes in prices as appreciation/depreciation accordingly. This subjects you to income tax and capital gains tax for whenever you sell those BTCs I believe?

This bitcoin wiki section would be useful. And another article here on Investopedia.

I’m not sure in which country you are so that may be different, but from my understanding I’m not sure how would goverment even track the coins you mined and how would you be able to correctly determine the price of the coin at the point at which it was mined. You could eventually account for sold coins to fiat while detucting costs for mining the coins. Best would be to consult your local authorities on this actually, there is no universal answer.

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