The U.S. Treasury Department and IRS clarified Tuesday that corporations can exclude unrealized gains on digital assets when calculating liability under the 15% corporate alternative minimum tax.
The move is particularly significant for Nasdaq-listed Strategy (ticker: MSTR), which has long flagged the risk of a multi-billion-dollar CAMT bill on its more than $27 billion in unrealized profits.
Under new accounting rules adopted earlier this year, companies were required to mark their crypto holdings to market, potentially exposing them to taxes on paper profits.
That overhang is now gone — at least for the time being.
“As a result of Treasury and IRS interim guidance issued yesterday, Strategy does not expect to be subject to the Corporate Alternate Minimum Tax due to unrealized gains on its bitcoin holdings,” Strategy Chairman Michael Saylor wrote in a post on X.
Shares of Strategy jumped nearly 6% in early trading on Wednesday, according to The Block price data, alongside broader crypto-linked stocks, as Bitcoin blasted back above $117,000.
Analysts at TD Securities called the change “favorable for the broader bitcoin ecosystem, not to mention Strategy,” saying it eliminates a key source of uncertainty around the company’s cash tax obligations.
Back in January, analysts warned that CAMT exposure could cost Strategy billions in 2026. The updated guidance ensures the firm won’t be taxed until it actually sells Bitcoin — a major relief for a company that has pledged never to part with its holdings.
The guidance is interim, meaning companies can rely on it now, though the IRS still needs to finalize the rules. A reversal is unlikely but not impossible.
Earlier this week, Strategy said it recently bought 196 bitcoin for $22 million, bringing total holdings to 640,031 BTC worth around $71.8 billion at current prices.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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