Bitcoin investment firm Strategy (formerly MicroStrategy) recorded a net loss in fiscal year 2024 due to impairment losses on $1.79 billion digital assets, according to its 10-K annual report filed on Feb. 18. The company warned that a significant decline in the market value of Bitcoin could prevent it from returning to profitability in the future and could affect its ability to meet its financial obligations.
In addition, as the company adopts FASB's new fair value accounting rules effective January 1, 2025, Strategy warns that unrealized fair value gains on its bitcoin holdings may be subject to a 15% corporate minimum alternative tax (CAMT) under the Inflation Reduction Act. Unless the Inflation Reduction Act is amended or tax relief is provided, the company may be subject to significant cash expenditure obligations beginning in 2026, which will materially affect its financial position.
Strategy's annual report warns of bitcoin market volatility or profit risk, and may face higher-than-expected tax burden
2025-02-18 16:05:57
Bitcoin investment firm strategy microstrategy 18 submission 10 annual reportdesk3cryptocurrencydesktopCrypto News
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