Michael Saylor’s Strategy Inc. just dodged what could have been a multi-billion dollar tax liability thanks to new IRS and Treasury guidance. That shift opens the door for renewed corporate Bitcoin accumulation, especially among firms holding large BTC reserves.
Under the updated rules, companies no longer need to count unrealized Bitcoin gains or losses when calculating the 15 % Corporate Alternative Minimum Tax (CAMT). That’s a major relief for firms like Strategy, which sits on billions in paper profits from its Bitcoin holdings.
The market responded immediately. Strategy’s stock jumped ~5 %, lifting broader market confidence about institutional Bitcoin adoption. Technical charts show Bitcoin breaking above resistance around $118,600 to $119,400, with projective targets ranging between $122,300 to $124,500, and even potential upside toward $128,000. Still, signs of overbought conditions suggest there could be a short pullback before the next leg up.
This development is being seen as a potential turning point: reduced tax risk might encourage more corporations to hold Bitcoin, fueling sustained demand. But much depends on timing, market sentiment, and macroeconomic winds.
Q&A
Q1: What tax change benefited Michael Saylor’s firm?
A1: New IRS and Treasury clarifications mean companies don’t have to count unrealized Bitcoin gains for the 15 % CAMT, avoiding a large potential tax bill.
Q2: How did the market react to this change?
A2: Strategy’s stock rose ~5 % immediately, and Bitcoin itself pushed past key resistance, signaling renewed institutional optimism.
Q3: What are the key price levels to watch next for Bitcoin?
A3: Support is seen around $116,900–$117,500, while breakout targets include $122,300 to $124,500, with potential extension toward $128,000.
