Tag: Bitcoin

MicroStrategy Faces Potential Billion-Dollar Bitcoin Tax Dilemma

MicroStrategy might owe billions in taxes on unrealized Bitcoin gains due to new CAMT rules, risking its long-term hodl strategy.



MicroStrategy’s Bitcoin obsession might backfire big time, thanks to new tax rules under the 2022 Inflation Reduction Act. The Corporate Alternative Minimum Tax (CAMT) slaps a 15% tax on financial income, even if no Bitcoin is sold. Since the company’s Bitcoin stash is worth over $18 billion, their tax bill could hit $4 billion if the IRS doesn’t cut them some slack.

Here’s the deal: unlike regular Bitcoin hodlers who only pay taxes when they sell, MicroStrategy could be taxed on paper profits. While the IRS excludes unrealized stock gains from CAMT, they haven’t done the same for Bitcoin yet. MicroStrategy’s pushing for Bitcoin to be treated like stocks, but it’s a toss-up whether the IRS will budge.

Making it worse, new accounting rules mean MicroStrategy has to report Bitcoin’s market value, which pumps up earnings—and taxes. If they can’t get an exemption, they might have to sell Bitcoin, which totally kills their hodl-and-chill vibe.

Still, with IRS rules up in the air, MicroStrategy is stuck waiting. The Bitcoin tax saga shows just how dicey it can be to pay taxes on super-volatile assets. One wrong move, and the company’s future could be shaky.

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Silk Road Founder Ross Ulbricht Walks Free After Trump Pardon

Summary: On January 21 of this year, former US President Donald Trump pardoned Ross Ulbricht, the founder of the infamous Silk Road, for his alleged ‘ridiculous’ life imprisonment. He was set free on that night after serving 12 years in prison. Elon Musk tweeted, “Honored to witness this historic moment.”.

Ulbricht is the founder of Silk Road back in 2011; he was arrested in 2013 for operating the dark web platform responsible for facilitating drug transactions, weapon sales, and other criminal activities using Bitcoin. His sentencing of 40 years plus two life terms has long been debated by members of the crypto community. The activist Amir Taaki and the venture capitalist Tim Draper also voiced support for freeing him from prison.

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Trump’s pardon came after lobbying from Ulbricht’s mother and support from the Libertarian Movement; thus, it was a strategic move to win over the crypto community, which sees Ulbricht as a Bitcoin pioneer. Trump announced the pardon via Truth Social, stating the sentence was “crazy.

Ulbricht’s presence in Bitcoin was undeniable. Whatever the controversial activities he did, certainly he was the pioneer who showed Bitcoin’s potential and capability beyond what the traditional system can offer. This release brought about mixed feelings as debates on justice, freedom, and crypto’s position toward the future did.

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Rumble Dives Into Bitcoin with $20M Crypto Plan

Rumble, the Tether-backed, Nasdaq-listed video-sharing app, just made its first-ever Bitcoin buy. CEO Chris Pavlovski dropped the news on Friday, January 17, confirming that the company officially kicked off its $20M Bitcoin investment strategy.

While Pavlovski didn’t spill the exact amount of Bitcoin they snagged, he made it clear this is just the beginning. The goal? Strengthen Rumble’s reserves with the OG crypto. Pavlovski called Bitcoin a boss move against inflation and pointed to its growing fanbase in the corporate world as a reason to stack sats.

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Rumble is now part of a bigger trend, joining companies like MicroStrategy and Marathon Digital in using Bitcoin to beef up their treasuries. For investors, it’s giving “Bitcoin ETF vibes” but with added spice.

With 67 million active monthly users, Rumble is carving out its own space as a YouTube alternative, thanks to its chill content moderation rules. And last December, Tether dropped a massive $775M investment into the platform, fueling its glow-up.

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Oh, and Rumble’s crypto flex doesn’t stop here. It also teamed up with El Salvador on cloud services, doubling down on its blockchain bromance.

This move? Peak “we’re in our Bitcoin era” energy.

Dan Tapiero Predicts Crypto Market Will Reach $10 Trillion by 2025

Macro investor Dan Tapiero has predicted explosive growth in the cryptocurrency market, projecting it to rise from $3.6 trillion to $10 trillion by 2025.

Tapiero believes Bitcoin will contribute $5 trillion to this growth, with other cryptocurrencies adding $2–$3 trillion. He also sees crypto-related businesses generating an additional $2–$3 trillion.

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He thinks this surge was driven by the pro-business climate promoted through the United States government under President-elect Donald Trump. This, he said, “considers capitalism and efficiency as paramount concerns,” hence bringing the spotlight and confidence to the digital assets.

Another unexpected turn: Elon Musk will head the new Department of Government Efficiency, DOGE. This appointment will amazingly lift productivity and, by consequence, corporate profits and overall US economy, he says. Among other benefits: lower interest rates, strong dollar, and decreased federal deficits.

According to Tapiero, supportive policies of influential leaders such as Musk are important to guarantee the process of innovation and long-term growth in this field.

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He also said that if the business conditions are right and with an inflow of new ideas, under proper conditions, the crypto market will reach unimaginable heights, with a position as one of the bedrocks of global economics.

XRP Could Overtake Ethereum in Market Cap, Says Messari Analyst

According to Messari analyst Sam Ruskin, XRP is on its path to flipping Ethereum’s market capitalization. In a post published on X today, the analyst said a couple of factors are most likely going to drive this movement: excitement after elections, a potential XRP ETF filing, and interest in “boomer coins” like XRP.

In that sense, XRP is up 460% since the U.S. election in 2024-a further sign of very strong investor confidence, says Ruskin. He went on to say it might also mean another big bout of buying in XRP, akin to the post-election rally in 2016 before Donald Trump’s inauguration.

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Whispers of a U.S.-based XRP ETF filing and favorable new tax rules for U.S. crypto projects add to market optimism. Ruskin also noted the trend of a resurgence in the legacy cryptocurrencies such as XRP, Hedera (HBAR), and Cardano (ADA) while Ethereum is failing to keep up with declining demand and a fragmented community.

Ethereum’s price remains 30% below its all-time high, with high open interest failing to translate into market growth. In contrast, XRP’s open interest aligns more closely with its price performance, reflecting stronger demand.

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Ruskin predicts XRP’s value could climb by 35-50% in the coming months, potentially bringing its market cap closer to Ethereum’s $415.3 billion from its current $187.4 billion.

Wyoming Proposes Bitcoin Strategic Reserve to Lead Financial Innovation

Wyoming, a pioneer in cryptocurrency legislation, has taken another step forward. Representative Jacob Wasserburger has filed the “State Funds-Investment in Bitcoin Act” (HB0201), a bill that would let the state invest a portion of its funds in Bitcoin to establish what’s called a Bitcoin Strategic Reserve and finally show some real financial independence and innovation for Wyoming.

Wyoming has always led the way – from women’s suffrage to the frontier of digital assets,” said Wasserburger. He indicated that such a bill would create some long-term advantages for the state while securing its leadership status with respect to Bitcoin legislation.

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Since 2018, Wyoming has implemented more than 20 crypto-friendly laws, including the famous SPDI framework. Wasserburger claims that HB0201 is the next step to actually enact two of the core values of Bitcoin: decentralization and financial resilience.

Other states, such as Texas and Pennsylvania, are considering similar moves, but Wyoming is at the forefront. Wasserburger is also the backer of federal legislation that would create a U.S. Strategic Bitcoin Reserve to help the country’s financial security in the new digital world.

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“Bitcoin represents financial strength and innovation,” Wasserburger said. “Wyoming must act now to stay ahead.

If passed, HB0201 would further cement Wyoming’s leadership in Bitcoin and likely spur other states to similar action, pushing the entire nation forward with respect to digital finance.

Could Bitcoin Education Be El Salvador’s Game-Changing Strategy?

El Salvador’s Bitcoin education, led by Stacy Herbert has fueled in many jobs, tech vibes, and optimism, redefining its future as Bitcoin central.

El Salvador made waves about four years ago when President Nayib Bukele said, “Yep, Bitcoin is now legal tender here,” putting it on equal footing with the country’s currency. Fast forward, the country’s all-in on crypto: a $630M Bitcoin reserve, plans for $1B in Bitcoin bonds, and even Tether shifting its HQ to El Salvador.

The real flex? Their Bitcoin education program. Stacy Herbert, who heads El Salvador’s Bitcoin Office, calls it a game-changer. They’re training up Bitcoin developers, and Herbert’s vibe is clear: “We need Bitcoin engineers, and we’re making them.” From high school classrooms to government offices, Bitcoin’s becoming part of everyday life. Students learn to run Bitcoin nodes, use mining rigs, and snag tech jobs that pay $4,000/month (vs. $600 for regular CS grads).

Even 80,000 government workers completed Bitcoin courses, and next up is AI and robotics classes for kids. El Salvador’s leveling up hard. Companies like Tether and Bitfinex are loving it, hiring local talent.

Despite tweaks to its Bitcoin wallet policy, the government’s still stacking sats—buying 1 Bitcoin daily and preparing for global crypto leadership. Herbert sums it up: “Good times are coming.

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Trump Inauguration Sparks Crypto Volatility Warnings

With the inauguration of Donald Trump mere days away, crypto investors are being warned to expect sharp price swings. Analysts at Singapore-based QCP Capital say they expect “heightened volatility” in the crypto market both in the lead-up to, and following the Jan. 20 ceremony. They liken current market jitters to turbulence seen during the first term of Trump in 2017.

Inflation in the U.S. economy remains a concern. Whereas job growth has been strong-non-farm payrolls were up 256,000 against an expected 165,000-inflation fears have lingered.The consensus for December is for a hotter CPI number than previous readings; something that will keep markets on their toes.

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At the same time, this uncertainty is heightened by the prospect of proposed tariffs on China by Trump, which might also add inflation. Again, these might be introduced piecemeal, not all at once. Also improving bond yields are shifting the market’s expectations, pricing in fewer rate cuts in 2025 and 2026.

Expect higher volatility in the lead-up to and after the inauguration as markets chew and adjust to a new Trump term,” warned QCP Capital.

There is, however, a silver lining: rumors of the Trump administration packed with crypto-friendly officials and, of course, whispers of executive orders that give digital assets relief. This might relieve the market temporarily.

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Still, caution prevails. Bitcoin has repeatedly tested the $90,000 mark, and with rising bond yields, the coming weeks could be anything but predictable for crypto investors.

Crypto Market Surges Following US CPI Data Release: What Lies Ahead?

Bitcoin hit $99K, altcoins soared as lower core CPI fueled Fed rate cut hopes, but inflation risks still linger.



Bitcoin smashed through $99K for the first time since Jan 7, climbing 10% from its monthly low. This crypto glow-up wasn’t just Bitcoin flexing—altcoins joined the party too. Virtuals Protocol skyrocketed by 25%, ai16z surged 17%, and Algorand jumped over 13%.

But the hype isn’t limited to crypto. Wall Street got its own glow-up: Dow Jones futures popped 700 points, S&P 500 futures climbed nearly 100 points, and bond yields dipped. The 10-year, 30-year, and 5-year yields are now chillin’ at 4.66%, 4.90%, and 4.48%.

What’s the tea? U.S. core inflation dropped from 0.3% to 0.2% last month, and yearly, it’s down from 3.3% to 3.2%. This got everyone hoping for juicy Fed rate cuts—maybe more than two this year. Core CPI is a big deal since it skips food and energy prices and is the Fed’s main squeeze.

Still, it’s not all sunshine. Inflation is above the Fed’s 2% goal, and some wildcards could stir the pot—like LA fires pushing up costs or Trump-era policies hiking inflation.

TL;DR: Crypto’s thriving, markets are vibing, but keep an eye on inflation drama—it’s far from over.

Also Read: BlackRock Unveils Bitcoin ETF for Canadian Investors

BlackRock Unveils Bitcoin ETF for Canadian Investors

BlackRock has introduced the iShares Bitcoin ETF in Canada and is now available to trade on Cboe Canada. The fund will be listed under the ticker IBIT for CAD and IBIT.U for USD, which provides an easy and regulated manner in which Canadians can invest in Bitcoin.

The fund employs a “fund-of-funds” approach by holding shares of the U.S.-listed iShares Bitcoin Trust ETF, which physically holds Bitcoin. Coinbase Prime, a trusted digital asset custodian, provides the ETF with secure and cutting-edge technology to manage Bitcoin holdings safely.

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As such, Helen Hayes, Head of iShares Canada at BlackRock, said, “The iShares Bitcoin ETF provides a cost-effective way for Canadian investors to gain exposure to Bitcoin without the complexities of direct ownership.”

Trading on Cboe Canada, which handles about 15% of securities traded on Canadian exchanges, is also in keeping with the exchange’s reputation for introducing innovative financial products.

As of January 10, 2025, the ETF has net assets of approximately $701,338 with 25,000 outstanding units. The management fee is 0.32%.

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In short, by offering the Bitcoin ETF, BlackRock commits itself to make it easier and more convenient for resident Canadians to invest in Bitcoin, thus further fortifying its commitment to leading financial innovation.

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