The company formerly known as MicroStrategy and helmed by co-founder Michael Saylor, has strategically acquired 22,048 Bitcoin worth $1.92 billion, capitalizing on a recent dip in Bitcoin's price. This acquisition elevates the firm's total Bitcoin holdings to over 528,000, amidst growing market uncertainties linked to impending U.S. tariff announcements.
Strategy, now holding the title of the world's largest corporate Bitcoin owner, surpassed 500,000 Bitcoin holdings on March 24. This milestone followed Saylor's earlier indications of a forthcoming Bitcoin purchase, subsequent to the March 21 pricing of its new tranche of preferred stock.
The company's Bitcoin portfolio has appreciated by over 21%, yielding an unrealized profit exceeding $7.7 billion, according to data from Saylortracker.
The firm's latest investment, nearly $2 billion despite the upcoming tariff announcement from former President Donald Trump scheduled for April 2, signals its confidence in Bitcoin. The tariffs could potentially influence Bitcoin's market trajectory by raising inflation concerns amid U.S. trade recalibrations. However, according to Andrei Grachev from DWF Labs, this market correction is seen as a constructive adjustment rather than a derailment of the bull market trend, highlighting that core fundamentals remain intact.
Despite not having sold any Bitcoin to date, Strategy may be liable for taxes on its substantial unrealized gains, which peaked at $19 billion earlier this year. As reported by Cointelegraph, the corporate alternative minimum tax, introduced under the Inflation Reduction Act of 2022, could impose a 15% tax rate based on an adjusted calculation of the company's profits.
Potential leniency towards cryptocurrency regulation could be anticipated under Trump's administration, potentially affecting IRS policy on unrealized gains from Bitcoin holdings. With these strategic maneuvers, Strategy remains a pivotal player in the ongoing evolution of the digital asset landscape.