Michael Saylor’s Strategy recently made headlines by purchasing 22,000 BTC for almost $2 billion, capitalizing on a recent dip in Bitcoin’s price. This move comes despite rising concerns in the market linked to US President Donald Trump’s planned tariff announcement on April 2.
In this strategic buy, the company, formerly known as MicroStrategy, acquired a total of 22,048 Bitcoin for approximately $1.92 billion, securing them at an average price of $86,969 each.
As a result of these acquisitions, the firm now possesses over 528,000 Bitcoins, which were obtained for a total investment of $35.63 billion, averaging out to $67,458 per BTC, as revealed by Saylor, the co-founder of Strategy, in a post on X on March 31.
Strategy currently stands as the largest corporate holder of Bitcoin worldwide, having crossed the remarkable benchmark of 500,000 Bitcoin on March 24, shortly after Saylor indicated a forthcoming Bitcoin purchase, just days following the company’s announcement regarding the pricing of its latest preferred stock tranche on March 21.
According to data from Saylortracker, the company’s Bitcoin investments are up over 21%, translating into unrealized profits exceeding $7.7 billion.
This nearly $2 billion purchase during the price dip occurs amid investor anxieties about Trump’s April 2 tariff announcement, which could heavily influence Bitcoin’s price trend for the upcoming month.
The announcement is anticipated to outline reciprocal trade tariffs aimed at major US trading partners. This news may heighten inflation fears and dampen demand for risk assets like Bitcoin.
“This sell-off isn’t the end of the bull run — it’s a healthy reset,” said Andrei Grachev, managing partner at DWF Labs, in an interview with Cointelegraph. “Markets often overreact to tariffs and macroeconomic headlines, but the underlying fundamentals remain strong.”
Tax Implications on Unrealized Gains for MicroStrategy
Even though Strategy has never liquidated any of its Bitcoin holdings, it may still face tax liabilities on its unrealized gains, which currently stand at over $7.7 billion, having spiked to $19 billion back in January, as reported by Cointelegraph.
According to the Inflation Reduction Act of 2022, the company may be obligated to pay federal income taxes on these unrealized gains. This legislation instituted a “corporate alternative minimum tax,” applying a 15% tax rate to applicable companies’ modified earnings, as mentioned in a January 24 article by The Wall Street Journal.
However, there is a possibility that the US Internal Revenue Service (IRS) could introduce an exemption for Bitcoin under Trump’s more crypto-friendly administration.
