Strategy Inc. Stock Jumps as IRS Exempts Bitcoin Gains from Corporate Minimum Tax

Shares of Strategy Inc., the Bitcoin-focused company led by Michael Saylor, surged more than 6% on Tuesday after U.S. regulators clarified that unrealized crypto gains will no longer count toward the corporate alternative minimum tax (CAMT). The move marks the stock’s strongest advance in two weeks.

The update comes after the Treasury Department and Internal Revenue Service issued new guidance allowing companies to exclude unrealized profits and losses on digital assets like Bitcoin when calculating whether they meet the $1 billion earnings threshold for the 15% CAMT. Strategy had previously anticipated the tax would apply starting in 2026, potentially resulting in a multibillion-dollar hit.

For firms with significant crypto holdings, the prior rules were a major concern. “When crypto goes up, companies would have owed taxes on gains, but if it went down, the IRS wasn’t going to refund those losses. This removes that overhang,” explained Brian Dobson, managing director at Clear Street.

Earlier this year, Strategy adopted new accounting standards requiring it to report Bitcoin holdings at fair value. As of June 30, the company disclosed $8.1 billion in unrealized gains, with its total Bitcoin stash valued around $74.6 billion. The firm posted $10 billion in net income for the second quarter, or $32.60 per share, thanks to these reporting changes. Analysts expect a more modest third-quarter profit of 13 cents per share.

The IRS decision eliminates a major source of uncertainty. Lance Vitanza of TD Cowen noted that the company no longer faces the risk of a multibillion-dollar tax liability beginning in 2026. Investors welcomed the news, driving Strategy’s stock up to $343.4—more than double its value from a year ago.