There is no ‘purchase’ happening in Strike if you use the method I stated. Strike only holds after tax fiat, not Bitcoin. No exchanges necessary on the Lightning ⚡️network.
Discussion
As I understand it Strike allows you to send US dollars as Bitcoin to an on-chain address or a lightning address. They also allow you to exchange Bitcoin for dollars and they have custody until you withdraw it. Am I correct on this?
Yes, there is an option of this. However, you can also send #Bitcoin to Strike and convert it on the Lightning ⚡️ Network into fiat without exchanging it. Strike only custodies fiat, not Bitcoin. If you use the Bitcoin tab to purchase or sell through their exchange, then you are correct. This is not necessary though.
Because everything is done with Strike through the Lightning ⚡️ Network there is no question of a ‘taxable’ event. If you deposit or withdraw fiat to or from Strike it is only after tax dollars. When using the app to move money it is done through Lightning ⚡️.