MicroStrategy, the software company turned Bitcoin juggernaut, is grappling with an unexpected tax conundrum. Its $47 billion Bitcoin (BTC) holdings — comprising $18 billion in unrealized gains — place it squarely in the crosshairs of the US corporate alternative minimum tax (CAMT).

Enacted under the 2022 Inflation Reduction Act, this tax could force the company to pay federal income taxes on paper gains, even without selling a single Bitcoin.

MicroStrategy Suffers a Tax System Not Built for Crypto

Traditionally, investment gains are not taxed until the assets are sold. However, the CAMT, designed to prevent companies from aggressively recognizing earnings while minimizing taxable income, applies a 15% tax rate to adjusted financial statement earnings.

MicroStrategy disclosed in January that it could owe billions starting in 2026 if Bitcoin’s price remains stable. While the IRS has exempted companies like Berkshire Hathaway from paying taxes on unrealized gains from stocks, it has yet to extend similar leniency to cryptocurrency holdings.

Tax analyst Robert Willens suggests there is no technical reason why cryptocurrencies cannot receive the same treatment, but political dynamics could play a role.

“If the Biden administration had stayed in power, exemptions could not materialize,” the Wall Street Journal reported, citing Willens.

MicroStrategy’s business model centers on aggressive Bitcoin accumulation, which has earned the company a $92 billion market valuation. However, this strategy has left it vulnerable to market fluctuations and regulatory hurdles. If forced to pay taxes on unrealized gains, MicroStrategy might need to sell portions of its Bitcoin stash, undermining its core strategy.

Such a scenario would make MicroStrategy one of the least tax-efficient ways for investors to gain Bitcoin exposure. The company is already dealing with speculation about pausing Bitcoin purchases amid blackout rumors, despite planning a $2 billion stock offering to bolster its Bitcoin reserves.

Accounting Changes Add Complexity

New rules from the Financial Accounting Standards Board (FASB) compound the issue. Starting this year, companies must report the fair value of cryptocurrencies on their balance sheets. MicroStrategy disclosed that this change would add up to $12.8 billion to its retained earnings and potentially $4 billion to its deferred tax liabilities.

This shift means MicroStrategy’s Bitcoin holdings will directly affect its financial statements. Such an outcome would make the company more susceptible to regulatory scrutiny and market volatility.

MicroStrategy’s Bitcoin strategy has been both a blessing and a curse. On one hand, it propelled the company into the Nasdaq-100, cementing its reputation as a trailblazer in corporate cryptocurrency investment. On the other hand, it exposed the company to unprecedented risks, including the possibility of a tax bill that could wipe out profits or necessitate asset liquidation.

The tax dilemma is not MicroStrategy’s only concern. The IRS is set to begin tracking cryptocurrency transactions on centralized exchanges in 2025, signaling a broader regulatory crackdown.

MicroStrategy’s relentless Bitcoin acquisition spree — spending over $1.1 billion in recent purchases and planning more through stock offerings — has sparked criticism. Some view it as reckless, while others see it as a long-term bet on Bitcoin’s dominance. The company’s recent $243 million Bitcoin purchase in January, its second this year, reflects its commitment to its strategy, even as risks mount.

As the IRS drafts CAMT implementation rules, MicroStrategy is lobbying for exemptions for crypto holdings. Should the IRS grant such relief, the company could avoid the crippling tax bill. However, if Bitcoin’s value declines or regulatory relief fails to materialize, the consequences could be severe.

In a market where Bitcoin’s trajectory is uncertain, MicroStrategy’s bold $46 billion bet stands as a high-stakes gamble. It could redefine the intersection of corporate strategy, cryptocurrency, and taxation.

Transak, a Web3 payments infrastructure provider, has announced its collaboration with uranium.io, the blockchain-powered uranium trading marketplace.

This partnership is designed to democratize access to uranium, an asset that is vital to powering the AI revolution and advancing global net-zero energy goals.

Transak’s Partnership with Uranium.io Unlocks Uranium Markets

Institutional investors have historically dominated uranium trading. Entry costs could be as high as $4.2 million, and minimum lot sizes are 50,000 pounds. This created significant barriers to entry for retail investors. 

However, uranium.io tokenizes physical uranium and utilizes blockchain technology. Real World Asset tokenization is the process of issuing digital tokens based on the blockchain to physical or traditional assets like gold, real estate, and, in this case, uranium.

A report by Standard Chartered predicted that the market for tokenized Real World Assets will reach $30 trillion by 2034. The Total Value Locked (TVL) in the RWA sector at the time of writing was $7.99 billion.

According to the partnership announcement, Uranium.io allows retail investors to trade uranium with a minimum investment of just $10. This move enables retail investors to access a high-value market that was once reserved for the wealthy and institutional players.

Transak’s fiat-to-crypto on-ramp will allow users to purchase uranium tokens, representing beneficial ownership of physical U3O8 (uranium). Purchases can be made using payment methods such as Google Pay, Apple Pay, credit cards, and bank transfers. This removes traditional barriers to accessing uranium trading. 

Users can now purchase uranium tokens via USDC on Etherlink for as little as $10, making this once-exclusive market accessible to a global audience.

“Our integration with uranium.io exemplifies how technology can empower individuals globally to participate in high-value asset trading that was previously limited to the most affluent,” Carlo de Luca Gabrielli, Global Director of Sales at Transak, said.

By tokenizing uranium and placing it on the blockchain, uranium.io offers a more transparent, efficient, and liquid marketplace. This speeds up transactions and simplifies custody.

Moreover, Transak said the uranium market saw a 27% increase in acquisitions between 2022 and 2023. With the introduction of tokenization, the market is expected to experience even greater growth.

The crypto market is rebounding from a volatile week that saw sharp corrections and losses across many altcoins. However, renewed investor optimism is offering crucial support to select tokens that continue to perform strongly. 

BeInCrypto has identified two crypto tokens that have achieved a new all-time high (ATH) despite the prevailing bearish-neutral market conditions.

GateToken (GT)

GT reached a new all-time high of $23.43 within the last 24 hours before slightly retreating to $23.39. This price action highlights strong momentum for the altcoin, with traders closely monitoring its ability to sustain gains near these record levels.

The week-long rally was fueled by a 6.7% increase over the past day, supported by a solid floor at $19.89. If GT maintains its current trajectory, it could extend its uptrend, attracting further interest from both retail and institutional investors.

However, concerns over profit-taking remain a significant risk. A potential wave of sell-offs could push GT back to its established support level of $19.89, temporarily halting its bullish momentum and prompting caution among traders

WhiteBIT Coin (WBT)

WBT reached a new all-time high during intra-day trading over the last 24 hours, hitting $28.76 before retracing slightly to $28.16. This recent surge highlights the altcoin’s strong performance amid a volatile market.

Currently, WBT is holding firm above its key support at $27.88. A rebound from this level could propel the altcoin beyond $28.76, potentially setting a new record high. Sustained buying pressure and favorable market conditions will be crucial for this bullish scenario to materialize.

However, if WBT loses the critical $27.88 support, it could decline further to $27.07. This drop would invalidate the bullish outlook and may increase selling pressure.