According to a report by the WSJ, MicroStrategy may need to pay federal income tax on its unrealized Bitcoin gains. Under the Inflation Reduction Act (IRA) of 2022, the company could be subject to a 15% Corporate Alternative Minimum Tax (CAMT), which is based on adjusted GAAP earnings, and cryptocurrency assets are not exempt from this tax. MicroStrategy is negotiating with the Internal Revenue Service (IRS) to seek an exemption. If the exemption is not granted, the company may need to sell some Bitcoin to pay the taxes, which could impact its investment strategy. As of now, MicroStrategy holds over 450 thousand Bitcoins, with unrealized gains of approximately 19.30 billion dollars, and the tax could take effect starting in 2026.

According to a report from WSJ, MicroStrategy may need to pay federal income tax on its unrealized Bitcoin gains. Under the Inflation Reduction Act (IRA) of 2022, the company could be subject to a 15% Corporate Alternative Minimum Tax (CAMT), which is based on adjusted GAAP financial statement earnings, and cryptocurrency assets are not included in the exemption. MicroStrategy is negotiating with the IRS to seek an exemption. If the exemption is not granted, the company may need to sell part of its Bitcoin to pay taxes, which could impact its investment strategy. As of now, MicroStrategy holds over 450 thousand Bitcoins, with unrealized gains of approximately 19.30 billion USD, and the tax could come into effect starting in 2026.

MicroStrategy may need to pay federal income tax on unrealized Bitcoin gains.