Strategy Bitcoin Holdings Reach $77.4 Billion as Company Avoids Tax Bill

TLDR

• Strategy Inc. now holds 640,031 BTC worth $77.4 billion, representing 3.2% of Bitcoin’s total circulating supply
• The company avoided a multi-billion dollar tax bill after the US Treasury and IRS exempted unrealized digital asset gains from corporate alternative minimum tax
• Strategy’s market cap gained over $8 billion, with MSTR stock rallying 8% following the tax guidance announcement
• The company’s Bitcoin holdings exceed the market capitalization of major banks including Deutsche Bank, Barclays, and BNY Mellon
• Strategy holds 48% of all Bitcoin owned by approximately 266 public and private companies, totaling 1.32 million BTC

Michael Saylor’s Strategy Inc. reached a new milestone as its Bitcoin treasury hit $77.4 billion in value. The company now holds 640,031 BTC, which equals 3.2% of Bitcoin’s total circulating supply.

Strategy started its Bitcoin journey with $250 million worth of the cryptocurrency. The company initially faced a $40 million unrealized loss. Now its holdings have grown to nearly double their 2024 value.

The recent valuation comes as Bitcoin returned to the $120,000 price level. Strategy added 11,085 BTC to its treasury over the past seven weeks. The most recent purchase was 196 BTC on Monday.

The company’s Bitcoin value now exceeds the market capitalization of several major financial institutions. These include BNY Mellon, Sberbank, US Bancorp, CIBC, ING, Barclays, Deutsche Bank, ANZ Bank and Lloyds.

Strategy’s Bitcoin holdings equal the entire GDP of countries like Uruguay, Sri Lanka and Slovenia. The $77 billion value could buy 2.5 million cars at $30,000 each or 385,000 houses at $200,000 each.

Tax Relief Drives Stock Rally

Strategy’s MSTR stock gained 8% following new guidance from the US Treasury and IRS. The company avoided a potential multi-billion dollar tax bill from the corporate alternative minimum tax. This 15% levy applies to large companies.

The new rules exempted Strategy by excluding unrealized capital gains in digital assets from the tax calculation. The company’s market cap increased by over $8 billion after the announcement. MSTR became one of the top stock performers in the 48 hours following the news.

Strategy has more than $27 billion in unrealized gains on its Bitcoin holdings. In a Wednesday press release, the company stated it no longer expects to pay the tax. The latest security filing confirms Strategy plans to exclude unrealized gains and losses from its adjusted financial statement income calculation.

Market Position and Competition

Strategy dominates the Bitcoin treasury space among public and private companies. The firm holds 48% of the total 1.32 million BTC owned by approximately 266 companies. This represents 6.6% of Bitcoin’s total supply, worth roughly $159 billion at current prices.

The next largest Bitcoin holder is MARA Holdings with 52,477 BTC worth approximately $6.3 billion. El Salvador holds the largest nation-state Bitcoin treasury with 6,338 BTC valued at $762.5 million. The country has been accumulating one BTC per day.

MSTR stock is up 17% year-to-date and over 109% in the last calendar year. As a leveraged play on Bitcoin, MSTR often outperforms BTC on certain timeframes. Bitcoin has rallied 4.6% since September 30 and trades above $120,500.

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