MicroStrategy Shares Surge After Clarification in Bitcoin Tax Guidance
MicroStrategy, the world's largest corporate holder of Bitcoin, has seen its shares rise following a clarification in tax guidance for digital assets. The company's stock increased by 4.6% to $337 on Wednesday, coinciding with a 3% rise in Bitcoin's price to $117,500.
The IRS and Treasury Department's new guidance on the calculation of corporate alternative minimum tax (CAMT) for digital assets has relieved MicroStrategy of an expected multi-billion tax liability. The company, which holds the largest amount of Bitcoin among corporations, had previously anticipated a significant tax burden due to unrealized gains on its Bitcoin holdings. However, the new guidance clarifies that firms are not required to incorporate unrealized gains or losses on the value of digital assets into CAMT calculations.
MicroStrategy's shares continued to rise on Wednesday, increasing by 5% to $338, according to Yahoo Finance. This surge comes after the company recently made its third smallest Bitcoin purchase of the year and raised $100 million. Since 2020, MicroStrategy has spent a total of $47.4 billion on Bitcoin, resulting in a current unrealized gain of nearly $28 billion. The company has stated that it plans to follow the new guidance and will not be subject to CAMT due to unrealized gains on its Bitcoin holdings in 2026 and beyond.
MicroStrategy's stock has advanced by 10% over the past six months, reaching $338 from its April price of $293. The company's significant Bitcoin holdings and the recent tax guidance have contributed to its stock performance. As the world's largest corporate holder of Bitcoin, MicroStrategy continues to navigate the evolving landscape of digital assets and tax policies.
