MicroStrategy and Unrealized Gains: Why the FUD Doesn’t Hold Up

Recent headlines suggesting that MicroStrategy might face taxes on unrealized Bitcoin gains under the Corporate Alternative Minimum Tax (CAMT) seem to be classic FUD. Here’s why:

1. Regulatory Clarity in Progress: MicroStrategy, alongside a coalition, petitioned the IRS to exclude unrealized gains from CAMT calculations. With guidance still in development and a public hearing scheduled for early 2025, no immediate enforcement seems likely.

2. Pro-Crypto Administration: Both the new Treasury Secretary, Scott Bessent, and crypto advisor David Sacks are strong advocates for Bitcoin. Their focus on fostering innovation and avoiding punitive measures on crypto investments makes such taxation policies improbable.

3. Economic Strategy: Taxing unrealized gains would contradict the administration’s goal to establish the U.S. as a crypto capital. It would discourage investment and innovation in digital assets—a move that seems counterproductive given current priorities.

For shareholders like me, this presents an opportunity. The market uncertainty might allow increasing stakes in MSTR at a discount. Once clarity is achieved, I expect this issue to boost confidence and value.

Bitcoin thrives on resilience, and so will those who stay focused through the noise.

#btc #bitcoin #mstr #microstrategy