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Bitcoin treasury firm Strategy, formerly MicroStrategy, has warned investors about potential profitability risks from Bitcoin price volatility and changing tax rules. The company, holding 478,740 BTC valued at over $46 billion, made these concerns clear in its latest 10-K filing with the Securities and Exchange Commission (SEC).
The filing specified potential liquidity concerns, new fair-value accounting rules, and the possibility of significant tax bills under the Corporate Alternative Minimum Tax (CAMT).
Strategy reported a net loss for 2024, primarily due to a $1.79 billion digital asset impairment. The company indicated that returning to profitability could prove difficult, especially if Bitcoin prices plunge. A significant decrease in Bitcoin’s market value could hit the firm’s liquidity, potentially forcing it to sell Bitcoin at un…
The post Investor Alert: Tax Rule Change Puts Strategy’s $46 Billion Bitcoin Treasury at Risk appeared first on Coin Edition.
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