 MicroStrategy may owe taxes on $19B unrealized Bitcoin gains: Report 
2025-01-24
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MicroStrategy may have to pay taxes on its unrealized gains despite not selling any Bitcoin to make a profit.
Michael Saylor’s MicroStrategy, the largest corporate Bitcoin BTCUSD holder, may need to pay federal income taxes on its unrealized gains according to the Inflation Reduction Act passed in 2022.
The act established a “corporate alternative minimum tax” under which MicroStrategy would qualify for a 15% tax rate based on the adjusted version of the company’s earnings, reported WSJ on Jan. 24.
However, the Internal Revenue Service (IRS) may potentially create an exemption for Bitcoin under President Donald Trump’s more crypto-friendly administration.
MicroStrategy’s holdings surpassed 450,000 BTC worth over $48 billion after the company bought Bitcoin worth $243 million at a price below $96,000 each, Cointelegraph reported on Jan. 13. 
According to MicroStrategy's portfolio tracker, the company’s Bitcoin holdings have a total unrealized gain of over $19.3 billion.
The report comes six months after MicroStrategy agreed to pay $40 million to settle a tax fraud lawsuit accusing him of evading income tax on June 3, 2024.
The District of Columbia sued Saylor and his company, MicroStrategy, in August 2022, alleging the executive paid no income taxes in the district for at least 10 years he had lived there.