MicroStrategy, for redemption of $ 1.05 billion in concern about Bitcoin tax system

Share this article

MicroStrategy has announced plans to redeem $ 1.05 billion in 2027 in 2027.

The decision was made in the face of the company's potential tax effects based on the new corporate lowest tax (CAMT) rules introduced by the Inflation Control Law in 2022.

The world's largest bitcoin -owned company, Microstratezy, may be subject to federal income tax on Bitcoin's $ 18 billion.

According to Wall Street Journal, CAMT has introduced a 15 % minimum tax rate based on the coordinated GAAP financial income.

The GAAP revenue indicates a reported revenue based on standardized accounting rules, including specific unrealized profits, such as rising bitcoin.

CAMT targets companies that have reported that the GAAP revenue is large but the taxable income is minimal in IRS.

Companies, such as Berkshire Hathaway, were exempted from the unrealized gain of stocks, but there is no such provisions in encrypted assets. MicroStrategy, which has a $ 47 billion bitcoin, has been lobbying in IRS in search of similar treatment.

According to Wall Street Journal, tax analyst Robert Willence, “IRS, especially under the Trump administration, which has particularly historically supported cryptocurrency promotion policies, ultimately excludes virtual currency's unrealized benefits. There is, “he pointed out that such exemption was not guaranteed.

Bond holders can convert the securities held by February 20, 2025 to class A ordinary shares, convert them in stock, and paid fractions in cash.

The company's tax status is even more complicated by the new rules of the Financial Accounting Standards Committee, which obliges the fair value report of cryptographic assets on the balance sheet.

MicroStrategy has recently reported that deferred tax debt has increased $ 4 billion and $ 12.8 billion under the new framework.

Share this article