#StrategyEstimates$4.1BIncomeTaxBenefit ๐ต SURPRISE: WHERE DID THIS $4.1 BILLION COME FROM? ๐ต
Youโre probably rubbing your eyes, wondering whether Strategy has to pay $4.1 billion in taxes or somehow just โfoundโ a pile of cash, right?
Letโs take about two seconds to clear things up!
โ Not cash: This is NOT actual cash income, nor is it a tax refund.
๐ Accounting โmagicโ: Since Bitcoin rose above its cost basis, they made a few accounting adjustments (not audited by KPMG yet, by the way). As a result, estimated future tax expenses went down. In short, this is a paper tax benefit from BTC going upโnot a pile of cash being pumped in to buy back shares or dump holdings!
What should traders do?
Donโt get carried away by this imaginary cash flow. Just look at how money is still steadily flowing into BlackRock. Fire up the charts and trade!
Note: This is not financial advice.
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