U.S. Treasury and IRS Exclude Corporate Alternative Minimum Tax on Unrealized Crypto Gains, Benefiting Major Holders

On September 30, the U.S. Treasury and the Internal Revenue Service (IRS) clarified that corporations can exclude unrealized cryptocurrency gains from the calculation of the 15% Corporate Alternative Minimum Tax (CAMT).

This measure is particularly crucial for companies like Strategy, which holds over $27 billion in unrealized BTC profits, and Bitmain, which has made substantial investments in ETH. Strategy has previously highlighted the risk of a multibillion-dollar CAMT tax burden.

Under new accounting standards adopted earlier this year, corporations are required to mark their cryptocurrency holdings to market, which could have subjected book profits to taxation. However, with this new...