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- IRS rules unrealized Bitcoin gains aren’t taxable.
- Strategy avoids a potential $4B tax bill.
- MSTR stock jumped 16%, outpacing Bitcoin’s rally.
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The U.S. Internal Revenue Service (IRS) has delivered long-awaited clarity on crypto taxation, giving a major boost to companies holding Bitcoin on their balance sheets. Strategy, formerly known as MicroStrategy, welcomed the update, noting that unrealized gains on its massive Bitcoin treasury will not be taxed.
As a result of Treasury and IRS interim guidance issued yesterday, Strategy does not expect to be subject to the Corporate Alternate Minimum Tax (CAMT) due to unrealized gains on its bitcoin holdings. $MSTR https://t.co/DEgluG8oEN
— Michael Saylor (@saylor) October 1, 2025
IRS Shifts Stance on Unrealized Gains
Previously, large firms were expected to report unrealized gains and losses on digital assets under the Corporate Alternative Minimum Tax (CAMT). This meant companies like Strategy, which sits on more than 674,000 BTC valued at $76.5 billion, could have faced billions in tax liabilities despite not selling their holdings.
Under the IRS’s latest directive, only realized gains—profits from actual sales—are taxable. For Strategy, this removes the threat of a $4 billion tax bill that could have forced asset sales and weakened its long-term Bitcoin strategy.
A Green Light for Corporate Bitcoin Adoption
Industry voices see this as more than just a reprieve for Strategy. Analysts argue the decision could encourage other U.S. companies to adopt a “HODL” approach, building Bitcoin treasuries without fear of tax penalties on paper profits.
“Other U.S. Bitcoin treasury firms now get similar relief, encouraging corporate BTC accumulation without unrealized gain penalties,” said Peter Duan, a prominent industry commentator.
Political Pushback and Market Impact
The announcement comes as Congress debates broader digital asset tax reforms. While pro-crypto lawmakers advocate exemptions for small transactions under $300, Senator Elizabeth Warren has voiced strong opposition, warning of potential revenue losses.
Also Read: Strategy Buys 196 BTC, Total Holdings Soar to 640K Despite MSTR Slump
Still, the market reaction has been clear. Strategy’s stock (MSTR) surged 16% in five days, outpacing Bitcoin’s 8.6% gain over the same period. The move underscores how closely MSTR continues to act as a leveraged bet on BTC.
By removing the immediate risk of taxation on unrealized gains, the IRS has given Strategy—and potentially other firms—the freedom to expand Bitcoin holdings without added pressure. For now, the ruling strengthens corporate adoption prospects and reinforces Bitcoin’s position in U.S. financial strategy debates.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
