The U.S. Treasury and IRS have backed away from a controversial plan that would have forced corporations to pay taxes on Bitcoin profits they never realized.
The updated guidance eases the application of the Corporate Alternative Minimum Tax (CAMT), a 15% levy on the reported book income of large corporations.
Relief for Bitcoin Treasuries
Under accounting standards, companies must record Bitcoin holdings at current market prices, even if no sale takes place. That left firms like Michael Saylor’s Strategy facing the possibility of being taxed on billions in unrealized gains. Coinbase and Strategy led industry efforts against the measure, while Senator Cynthia Lummis pushed for legislation to remove what she called “unfair double taxation.”
The new interim guidance clarifies that corporations may exclude unrealized crypto gains and losses when determining their adjusted financial statement income (AFSI) for CAMT purposes. This adjustment effectively shields Bitcoin-focused companies from an extra layer of taxation that did not apply to traditional assets.
Strategy Benefits Immediately
For Strategy, the update brings immediate relief. The company holds over 640,000 BTC, acquired for about $47.35 billion and now valued near $74 billion. Earlier this year, it reported a $14 billion paper gain that would have triggered CAMT liability under the old framework. Now, Strategy has confirmed it no longer expects to be subject to the tax, easing investor concerns.
Market and Industry Reaction
Shares of Strategy responded positively, rising nearly 3% to trade above $330 following the announcement. Analysts say the guidance not only benefits existing Bitcoin treasuries but could also encourage other corporations to adopt crypto as a reserve asset without fear of sudden tax exposure.
For the wider industry, the decision is being hailed as one of the most significant regulatory wins of the year. While the guidance is still interim and full regulations are expected later, it signals a more balanced approach to digital asset taxation and strengthens the U.S. position in the global race to lead in Bitcoin adoption.
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Source: https://coindoo.com/strategy-escapes-billions-in-potential-taxes-after-crypto-tax-rule-revision/