Strategy avoids tax hit on Bitcoin after new IRS guidance

Key Takeaways

The IRS and US Treasury issued new guidance excluding Strategy’s unrealized gains on Bitcoin from the corporate alternative minimum tax (CAMT).
Strategy and similar companies will not face CAMT liability on digital asset holdings, easing tax concerns.

Strategy, a publicly traded software company positioned as a leading Bitcoin treasury holder, said it will not face corporate alternate minimum tax on its digital asset holdings following new IRS guidance.

The US Treasury issued interim guidance on the Corporate Alternative Minimum Tax (CAMT) to explicitly exclude unrealized gains on digital asset holdings from tax assessments. The guidance indirectly addresses concerns that including such gains could pressure corporations into forced asset sales.

Senator Cynthia Lummis noted the ruling resolves risks of taxing phantom gains and supports domestic firms building Bitcoin treasuries. The change aligns with broader efforts to foster US crypto innovation under the Trump administration.

The CAMT relief enables companies with significant Bitcoin reserves to pursue sustained accumulation without tax-driven disruptions. The guidance signals a more favorable environment for corporate crypto strategies as digital assets gain adoption as treasury reserve assets