The corporate world’s most aggressive Bitcoin investor, Strategy, has signaled that its high-stakes crypto playbook could be facing its biggest challenge yet: a looming multi-billion dollar tax bill that might force it to sell its prized digital assets.
In a recent filing with the Securities & Exchange Commission (SEC), the company, which holds a staggering 597.325 BTC worth over $65 billion, laid bare the risks associated with its revolutionary treasury strategy. The primary concern is a new US tax rule that could turn its massive paper profits into a very real cash problem.
The Tax Rule Shaking the Bitcoin Whale
The issue at hand is the Corporate Alternative Minimum Tax (CAMT), a 15% levy on the “adjusted financial statement income” of large corporations. Crucially, this includes unrealized gains—the profits a company has on paper but hasn’t yet cashed in.
Thanks to new accounting rules, Strategy must report its Bitcoin holdings at fair value. With Bitcoin’s price soaring to record highs, the company recorded a massive $14 billion unrealized gain in the second quarter of 2025. This success, however, puts it squarely in the CAMT’s crosshairs.
“We expect… that we would become subject to the CAMT beginning in the 2026 tax year,” the company stated in its filing.
A High-Wire Act of Debt and Digital Gold
While the gains are impressive, Strategy’s financial position is complex. The company’s core software business doesn’t generate enough cash to fund its operations. It has financed its Bitcoin purchases aggressively, accumulating an outstanding debt of $8.24 billion as of June 30.
On top of this, the company already has $6.3 billion in deferred tax liabilities linked to its Bitcoin profits. The potential 15% CAMT payment would add another significant cash burden.
To meet these obligations, the company admitted it has limited options. “We may need to liquidate some of our Bitcoin holdings or issue additional debt or equity securities to raise cash,” the filing warned. Such a sale could have a “material adverse effect on our operating results.”
Could Strategy’s Problem Ripple Through the Market?
Strategy’s situation is not just its own. The company pioneered the Bitcoin treasury model, and over 140 public companies have followed its lead. If these firms also see their unrealized gains surge, they could face similar tax pressures, creating a potential wave of forced selling across the market.
As the holder of 2.84% of Bitcoin’s total 21 million supply, a forced liquidation by Strategy could introduce significant selling pressure and volatility into the crypto market, impacting investors globally.
For now, the company remains committed to its long-term Bitcoin acquisition strategy. However, as CryptoQuant analysts noted, “It could unravel if BTC crashes, credit dries up, or tax hits.” The high-reward strategy has entered a new, high-risk chapter.
