When BTC price reached a new high on July 9, MicroStrategy Strategy faced a new challenge.
CryptoQuant warned on X platform that two new US regulations, ASU 2023-08 accounting standards and Corporate Alternative Minimum Tax (CAMT), will be implemented in 2025 and 2026, meaning unrealized gains will directly enter the tax base. For MicroStrategy, which holds 597,000 BTC with unrealized gains of $22 billion, this could mean billions of dollars in cash tax liability.
Note: ASU 2023-08 was issued by the Financial Accounting Standards Board (FASB) on December 13, 2023, improving accounting and disclosure requirements for specific crypto assets like BTC and Ethereum. The main requirement is that crypto assets must be subsequently measured at fair value, with value changes directly recorded in net income.
Concerns of Bitcoin Asset Growth
According to CryptoQuant, MicroStrategy's total BTC market value is about $64.4 billion as of June 30, 2025. Previously, these positions only affected profit and loss upon sale; however, ASU 2023-08 requires recording at fair value, meaning market fluctuations will directly reflect in earnings.
Double Impact of ASU 2023-08 and CAMT
CAMT will tax "adjusted financial statement income" at 15% starting in 2026, meaning as BTC market value rises, MicroStrategy's tax liability will increase. CryptoQuant cited MicroStrategy's SEC filing:
"The company may need to liquidate part of its BTC holdings or issue additional debt or equity securities to raise sufficient cash to fulfill tax obligations."
It's worth noting that MicroStrategy founder Michael Saylor has repeatedly stated the company will only continue buying and will not sell any BTC.
Two Fundraising Paths: Selling Coins or Borrowing Debt
Selling BTC would quickly generate cash but might suppress BTC price; raising funds through convertible debt or preferred stocks would maintain holdings but potentially increase financial leverage and risk credit rating downgrades. The company's recent plan to issue up to $4.2 billion in Series A preferred stocks has been questioned by some analysts regarding debt sustainability.
Moreover, as more companies adopt MicroStrategy's hoarding strategy, they may face similar challenges. If the market collectively sells BTC, the price could face significant pressure.
