🔶👉 #MicroStrategy could face $19 billion in tax liability on unrealized #Bitcoin gains

MicroStrategy, which owns more than 450,000 BTC worth more than $48 billion, could face a 15% tax on unrealized gains. The Inflation Reduction Act of 2022 introduces a so-called corporate alternative minimum tax that could also apply to the company’s $19.3 billion in unrealized Bitcoin gains. This would be despite the fact that the firm, led by Michael Saylor, never sold any bitcoin.

However, the IRS could grant an exemption for BTC under the Trump administration, which has declared a more friendly attitude towards cryptocurrencies. It has granted such exemptions in the past for stocks and other similar assets. Microstrategy is lobbying for a similar exemption for BTC.

If Microstrategy were to pay the tax, it could be forced to sell some of its Bitcoin holdings, which could cast some doubt on the company's market value, which significantly exceeds the value of its BTC holdings.