Digital Asset Valuations: A Structured, Market-Based Approach

As digital assets continue to gain traction in financial reporting, the need for reliable, transparent valuation methodologies has become increasingly important.

At Harvest, cryptocurrencies and other decentralized digital assets are valued using documented trade prices from multiple exchanges, aligning with ASC 820 and IFRS 13 requirements to use observable market inputs whenever possible.

Unlike traditional financial instruments, cryptocurrencies primarily trade on decentralized exchanges using blockchain technology. Because of this, pricing requires a broader data approach. Harvest sources pricing data from three or more exchanges, ensuring that valuations reflect a well-supported view of the active market.

Each price is then re-verified as of the valuation date, with additional review of:

• Trade volume

• Price variances across exchanges

• Overall market activity

This multi-layered process helps ensure that valuations are both accurate and defensible.

When a digital asset is actively traded, Harvest uses the documented trade price as the basis for fair value, consistent with accounting guidance that prioritizes quoted prices in active markets.

In cases where sufficient market data is not available or does not meet quality standards, Harvest may provide a Level 3 estimate based on less liquid trading activity - or determine that a price cannot be reliably established.

Valuations are typically struck at 11:59 PM Eastern Time on the valuation date, with flexibility to accommodate alternative timing when needed.

Need Support with Digital Asset Valuations?

As digital assets continue to evolve, having a clear and defensible valuation approach is essential. If your team is working through digital asset pricing or navigating related reporting requirements, Harvest is here to support you with independent, transparent valuations you can rely on.

Reach out to learn more about how Harvest can support your valuation process.