Tax Evasion Allegations
Michael Saylor, a Bitcoin advocate and chairman of MicroStrategy, has agreed to pay $40 million to settle a tax fraud lawsuit. The lawsuit alleged that Saylor evaded over $25 million in income taxes while living in Washington, D.C.
Saylor initially denied the allegations, claiming he was a Florida resident. However, the settlement does not require him to admit any wrongdoing.
MicroStrategy’s Involvement
MicroStrategy stated that the tax matter was Saylor’s personal issue and that he was not responsible for overseeing his tax obligations. The company emphasized that it will not contribute to the settlement.
Accountability Under the Law
DC Attorney General Brian L. Schwalb emphasized that the settlement holds even the wealthiest individuals accountable under the law. He noted that Saylor openly boasted about his alleged tax evasion and encouraged others to do the same.
Bitcoin Holdings
Despite the tax fraud allegations, Saylor remains a strong Bitcoin advocate. MicroStrategy has purchased over 214,000 Bitcoin to hedge against inflation. As of April, the value of these holdings was estimated at $13.5 billion.
Stock Performance
While Bitcoin’s value has surged, MicroStrategy’s stock price has declined since March. The company’s strategy of selling stock to buy Bitcoin has led to a cycle of increased stock prices and further Bitcoin purchases.
