Strategy’s tax exposure is a head-on collision with a cash flow gap
The post Strategy’s tax exposure is a head-on collision with a cash flow gap appeared on BitcoinEthereumNews.com. For years, Michael Saylor has proudly declared that Strategy would “never sell” its Bitcoin. That mantra faces a stern test with new taxation laws. Fresh SEC filings and tax rules mean some of the coins in Strategy’s 597,325 BTC (roughly $67 billion at current prices) treasury may have to go. In a July 7 Form 8‑K, Strategy laid out a new headache: under accounting standard ASU 2023‑08, it must mark its Bitcoin to market each quarter, recording unrealized gains as income. Risk: Tax bills may force BTC sales Strategy writes: "We may need to liquidate some of our bitcoin holdings or issue additional debt or equity securities to raise cash sufficient to satisfy our tax obligations." In plain terms: if tax hits, BTC may need to be sold. pic.twitter.com/6ENYrQhhTf — CryptoQuant.com (@cryptoquant_com) July 10, 2025 That boost to paper profits carries a downside. Starting in 2026, the U.S. will slap a 15% Corporate Alternative Minimum Tax (CAMT) on companies with over $1 billion in adjusted income, potentially crystallizing billions in tax bills on gains the company hasn’t sold. Strategy once reported Bitcoin at purchase cost, shielding those sky‑high gains from its income statement. Now, every uptick in Bitcoin’s price inflates taxable income, whether the company moves a single coin or not. In practical terms, Saylor’s empire could face a multi‑billion‑dollar tax hit, even if its Bitcoin stash stays untouched. A thread on X (formerly Twitter) by analytics firm CryptoQuant, posted Thursday, July 10, 2025, summarized the risk in stark terms. “The company might owe cash taxes on unrealized BTC gains,” the firm wrote, adding that Strategy’s own disclosures admit it may need to liquidate some of its Bitcoin holdings or issue additional debt or equity to meet those obligations. Strategy’s tax exposure is a head-on collision with a cash flow gap Strategy’s own filings admit that its…
The post Strategy’s tax exposure is a head-on collision with a cash flow gap appeared on BitcoinEthereumNews.com.
For years, Michael Saylor has proudly declared that Strategy would “never sell” its Bitcoin. That mantra faces a stern test with new taxation laws. Fresh SEC filings and tax rules mean some of the coins in Strategy’s 597,325 BTC (roughly $67 billion at current prices) treasury may have to go. In a July 7 Form 8‑K, Strategy laid out a new headache: under accounting standard ASU 2023‑08, it must mark its Bitcoin to market each quarter, recording unrealized gains as income. Risk: Tax bills may force BTC sales Strategy writes: "We may need to liquidate some of our bitcoin holdings or issue additional debt or equity securities to raise cash sufficient to satisfy our tax obligations." In plain terms: if tax hits, BTC may need to be sold. pic.twitter.com/6ENYrQhhTf — CryptoQuant.com (@cryptoquant_com) July 10, 2025 That boost to paper profits carries a downside. Starting in 2026, the U.S. will slap a 15% Corporate Alternative Minimum Tax (CAMT) on companies with over $1 billion in adjusted income, potentially crystallizing billions in tax bills on gains the company hasn’t sold. Strategy once reported Bitcoin at purchase cost, shielding those sky‑high gains from its income statement. Now, every uptick in Bitcoin’s price inflates taxable income, whether the company moves a single coin or not. In practical terms, Saylor’s empire could face a multi‑billion‑dollar tax hit, even if its Bitcoin stash stays untouched. A thread on X (formerly Twitter) by analytics firm CryptoQuant, posted Thursday, July 10, 2025, summarized the risk in stark terms. “The company might owe cash taxes on unrealized BTC gains,” the firm wrote, adding that Strategy’s own disclosures admit it may need to liquidate some of its Bitcoin holdings or issue additional debt or equity to meet those obligations. Strategy’s tax exposure is a head-on collision with a cash flow gap Strategy’s own filings admit that its…
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