MicroStrategy Faces Potential Multibillion-Dollar Tax on Unrealized Bitcoin Gains Under 15% CAMT Starting 2026, Seeks IRS Exemption

Jan 24, 2025, 02:22 PM

MicroStrategy Inc. is facing a potential multibillion-dollar tax liability on $18 billion in unrealized Bitcoin gains, according to reports from the Wall Street Journal. The company, which holds about $47 billion worth of Bitcoin, including 461,000 BTC valued at over 7.5 trillion yen, may be subject to a 15% corporate alternative minimum tax (CAMT) starting in 2026, as introduced by the 2022 Inflation Reduction Act. This tax applies to companies with annual income over $1 billion. Despite not selling its Bitcoin holdings, the potential tax could amount to 6,240 billion yen. MicroStrategy has urged the IRS, under the Trump administration, to consider exemptions for unrealized cryptocurrency gains, following a joint letter with Coinbase on January 2nd, arguing that such taxation is unfair and could lead to capital flight and forced asset sales. Reports also mention that the unrealized gains could be as high as $19.3 billion.