Bitcoin rally delivers $4.1 billion tax windfall for Strategy
Summary
Strategy estimated a $4.1 billion income-tax benefit from a September 30 accounting adjustment after Bitcoin’s fair value exceeded its cost. The company’s reported 848,000 BTC holdings and its tax accounting are distinct from ETF and investor cost bases. BlackRock’s IBIT held about 806,038 BTC on October 5; estimates put its average acquisition cost at $81,188 per BTC on October 2. The fund’s first-half acquisitions and redemptions, plus mixed ETF flows on October 5, do not establish that cost-basis crossings caused trading decisions. Share sales, cash redemptions and in-kind Bitcoin transfers are separate processes, and more aligned flow and price data would be needed to assess market impact.
