WSJ: Microstrategy may face huge tax liabilities due to CAMT tax law and is seeking exemptions

ChainCatcher news, The Wall Street Journal reports that Microstrategy may face huge tax liabilities due to unrealized gains. The company holds 461,000 bitcoins and may need to sell some of them to pay taxes if it does not obtain an exemption.

This issue stems from the Corporate Alternative Minimum Tax (CAMT) in Biden's 2022 Inflation Reduction Act, which requires companies with annual revenues exceeding $1 billion to pay a minimum tax of 15%. CAMT specifically targets unrealized gains, which could impact Microstrategy's financial situation and potentially affect the cryptocurrency market.

While some believe this prediction is over-speculation, critics argue that taxing unrealized gains undermines property rights and market stability, and forcing companies to sell assets to meet tax obligations infringes on their right to manage resources freely. Whether Trump will intervene remains uncertain.