According to Bloomberg, Michael Saylor, the chairman of business intelligence software company MicroStrategy and a Bitcoin (BTC) bull, has agreed to pay $40 million to settle a tax fraud lawsuit.
The lawsuit, filed by the attorney general’s office in Washington, D.C., accused Saylor of evading over $25 million in income taxes despite living in Washington for over a decade.
MicroStrategy’s Saylor Resolves Tax Evasion Allegations
In August 2022, the lawsuit alleged that Michael Saylor had “knowingly evaded tax payments,” a claim which he vehemently denied at the time, stating that he was a Florida resident.
Interestingly, according to an official statement, the settlement reached is considered the largest income tax recovery in the District of Columbia’s history. However, as stated in a filing by MicroStrategy, the agreement does not require Saylor or MicroStrategy to admit any wrongdoing.
The company clarified that the tax matter was Saylor’s issue and that he was “not responsible for overseeing his tax obligations.”
A spokesperson for MicroStrategy emphasized that the firm will not contribute to the settlement, and Saylor will bear the full cost. The settlement marks a significant step in holding even “the wealthiest and most influential individuals” accountable under the law, as stated by DC Attorney General Brian L. Schwalb.
Schwalb highlighted that Saylor openly boasted about his alleged tax evasion in Washington and encouraged others to follow suit. The attorney general’s office deemed this settlement a precedent-setting case, emphasizing that no person should be above the law regardless of wealth or power.
Bitcoin Enthusiasm Translates To $13.5 Billion
Michael Saylor, a well-known Bitcoin enthusiast, has been a notable beneficiary of the cryptocurrency’s recent surge in value.
As reported by Bitcoinist, since MicroStrategy began buying Bitcoin to hedge against inflation, the value of its holdings has risen to approximately $13.5 billion as of the end of April. During the first quarter, the company purchased an additional 25,250 BTC, bringing its total holdings to 214,400.
Jeff Dorman, chief investment officer at Arca, a digital asset management firm, summarized Saylor’s strategy for MicroStrategy as follows: sell stock or debt and use the proceeds to buy Bitcoin. As BTC’s value increases, so does the price of MSTR stock, allowing the company to sell more stock or debt and repeat the cycle.
The leading cryptocurrency on the market, Bitcoin, is trading at $69,190, indicating a 2% upside deviation from its previous consolidation observed last week.
In contrast, MicroStrategy’s stock price, listed as MSTR, is currently $1,600, a consistent decline from its March-end mark of $1,990.
Featured image from Market Insider, chart from TradingView.com
Credit: Source link
