Michael Saylor, chairman of business intelligence software company Microstrategy and a Bitcoin (BTC) bull, have agreed to pay $40 million to settle a tax fraud lawsuit, according to Bloomberg.
The suit, filed by the Attorney General’s office in Washington, D.C., accuses Saylor of dodging more than $25 million in income taxes despite living in Washington for more than a decade.
Microstrategy’s Saylor settles tax evasion charges
In August 2022, the suit claimed that Michael Cyro Stating that he was a Florida resident, he received “knowingly evaded tax payments,” a claim he strongly denied at the time.
Interestingly, according to the official statement, the agreement reached It is considered the largest income tax recovery in District of Columbia history.. However, as stated in Microstrategy’s filing, the agreement does not require Saylor or Microstrategy to admit any wrongdoing.
The company said the tax issues were Saylor’s problem and that it was “not responsible for overseeing its tax obligations.”
A Microstrategy spokesperson emphasized that the company would not contribute to the settlement and that Saylor would bear the full cost. The settlement is a significant step forward for even “the wealthiest and most powerful individuals” who, as D.C. Attorney General Brian L. Schwalb noted, are held accountable under the law.
Schwalb emphasized that Saylor publicly boasts about her claims tax evasion It encouraged others in Washington to follow suit. The attorney general’s office said the agreement considered cases based on precedent and emphasized that no person, regardless of wealth or power, should be above the law.
Bitcoin Enthusiasm Leads to $13.5 Billion
Michael Saylor, a well-known Bitcoin enthusiast, has been a notable beneficiary of the Cryptocurrency’s recent surge in value.
like reported Bitcoinist said the value of its stake had risen to about $13.5 billion as of late April after Microstrategy began buying bitcoin to hedge against inflation. During the first quarter, the company purchased an additional 25,250 BTC, bringing its total stake to 214,400.
Jeff Dorman, chief investment officer at digital asset management firm ARCA, summarized Saylor’s strategy for Microstrategy: like Value of BTC The price of MSTR stock also increases, allowing the company to sell more stock or debt and repeat the cycle.
Bitcoin, the market’s leading cryptocurrency, traded at $69,190, indicating a 2% upside from the previous consolidation observed last week.
In contrast, Microstrategy’s stock price, listed as MSTR, is currently at $1,600, a consistent decline from $1,990 on March 1.
Featured image from Market Insider, chart from TradingView.com