MSTR Surges 6% After Tax Relief on Bitcoin Gains from Trump Admin

  • Strategy stock rose over 6% after the Trump Administration clarified new tax rules for digital assets.
  • The company will not be subject to the 15% corporate alternative minimum tax (CAMT) on unrealized Bitcoin gains.
  • Strategy holds over $74 billion in bitcoin with more than $27 billion in unrealized gains.
  • The firm states it no longer expects to pay the CAMT, according to its latest filing.
  • MSTR shares are up 17% year-to-date and 109% over the past year, trading just above $340.

Strategy (MSTR) stock increased by more than 6% on Wednesday after the U.S. administration issued new guidance exempting the company’s unrealized bitcoin gains from the upcoming corporate alternative minimum tax. The tax, known as CAMT, is a 15% minimum levy on large corporations. The recent decision means companies like Strategy do not have to include unrealized gains from digital assets when calculating taxes.

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Strategy currently holds over $74 billion in bitcoin and reports more than $27 billion in unrealized gains on its bitcoin holdings. In a press statement, the company confirmed it does not expect to pay the CAMT. “Pursuant to the Interim Guidance, the Company plans to exclude its unrealized gains and losses from the calculation of its AFSI for purposes of determining whether it is subject to CAMT,” the filing said.

Strategy’s updated filing clarified, “As a result, the Company no longer expects to become subject to CAMT due to unrealized gains on its bitcoin holdings.” The company is considered one of the largest institutional holders of bitcoin globally, which has contributed to its share performance.

So far in 2024, MSTR shares have climbed 17%. Over the past year, the stock is up by more than 109%. In September, the company narrowly missed inclusion in the S&P 500 index, which caused shares to briefly fall. Presently, MSTR trades just above $340, just under its 200-day simple moving average of $355.

For more details, see: Michael Saylor Calls Bitcoin “Digital Capital”, MSTR Stock Rallies.

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