MicroStrategy’s Bitcoin Bet Faces a $47 Billion Tax Nightmare
MicroStrategy’s $47 billion Bitcoin holdings, with $18 billion in unrealized gains, face a tax threat under the US corporate alternative minimum tax (CAMT). Effective in 2026, CAMT could impose a 15% tax on unrealized gains, potentially forcing the company to sell Bitcoin to cover billions in liabilities.
Unlike stocks, crypto lacks CAMT exemptions, leaving MicroStrategy vulnerable. Adding complexity, new accounting rules require fair-value reporting for cryptocurrencies, exposing the company to market volatility.
As the IRS drafts CAMT rules, MicroStrategy is lobbying for relief. Without exemptions, its bold Bitcoin strategy could face severe financial consequences.
Material prepared by the exchange: coytx.com
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