• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Tax Implications for MicroStrategy's Unrealized Gains: What Lies Ahead?

user avatar

by Giorgi Kostiuk

2 months ago


MicroStrategy, holding a bitcoin asset worth about $47 billion, may face tax liabilities on unrealized gains due to new legislation.

New Tax Threat for MicroStrategy

The Inflation Reduction Act of 2022 introduced a corporate alternative minimum tax affecting companies with annual income over $1 billion. MicroStrategy could face a 15% tax on adjusted earnings, including unrealized bitcoin gains not exempt under CAMT rules. The company hopes for changes due to the crypto-friendly stance of the Trump administration.

MicroStrategy and Coinbase Oppose CAMT

MicroStrategy and Coinbase opposed CAMT, requesting the US Treasury and IRS to exclude unrealized crypto gains from taxes, as this might impact companies holding large crypto assets. They warn that tax obligations could reach billions if the current regulations remain unchanged.

Future Tax Changes for Crypto Investors

Investor interest in crypto tax laws increased after the IRS announced new crypto regulations in June 2024, requiring exchanges and brokers to report digital asset sales starting 2025. This follows MicroStrategy's agreement to pay $40 million to settle a tax fraud lawsuit.

In summary, MicroStrategy and other major crypto asset holders continue to monitor regulatory changes that could substantially impact their tax obligations and asset management strategies.

0

Share

Other news

Arm Strengthens AI Chip Technology with Alphawave Acquisition

Arm Ltd. announced the acquisition of Alphawave to enhance its position in AI chip technology.

user avatarGiorgi Kostiuk

6 minutes ago

Qubetics Takes dVPN to New Heights

Qubetics offers a decentralized VPN that provides enhanced security and privacy through blockchain.

user avatarGiorgi Kostiuk

6 minutes ago

Key Aspects of Ripple's Settlement with the SEC

SEC concludes case against Ripple, but XRP price remains stable. Holders seek SEC confirmation.

user avatarGiorgi Kostiuk

7 minutes ago

PumpBTC on Binance Raises 307,187 BNB Instead of 1,239.52 BNB in 10 Minutes

PumpBTC raised 307,187 BNB in 10 minutes, showcasing AI interest in DeFi.

user avatarGiorgi Kostiuk

7 minutes ago

DeFi Yield Decline: What Users Should Expect?

Average stablecoin yield in DeFi falls to 5.8%, showcasing market stability and reduced risk appetite.

user avatarGiorgi Kostiuk

7 minutes ago

Experts are Monitoring MAGACOINFINANCE Amid Growing Buzz

MAGACOINFINANCE attracts investor attention with $4.5M raised and an innovative model.

user avatarGiorgi Kostiuk

7 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.