Sister Wood also talked about the core issue of American capital.

If a fund buys actively managed ETFs or mutual funds, and the fund manager frequently adjusts positions (buying and selling stocks, bonds, and crypto assets), each time a profit is realized, it triggers capital gains tax at the fund level. Even if investors do not sell their fund shares, they still have to pay taxes.

This is why there has been a wave of funds indirectly investing in BTC and ETH through MicroStrategy exposure.

In this way, these MicroStrategy companies, regardless of how they buy and sell Bitcoin, issue bonds, or raise capital internally, will not trigger capital gains tax for stock investors.

In other words, the active operations of companies like MicroStrategy and Bitmine are completed within the company’s balance sheet, and the profits and losses from these transactions are reflected in the financial statements, unlike funds that are required to distribute and tax shareholders for the year.

So MicroStrategy = Large North American tax arbitrage $BTC $ETH