The strategy warns that fluctuations in Bitcoin's market value may pose profit risks and could face unexpected tax burdens

According to ChainCatcher news reported by The Block, Bitcoin investment company Strategy (formerly MicroStrategy) submitted its 10-K annual report on February 18, showing a net loss for the fiscal year 2024 due to a $1.79 billion impairment loss on digital assets. The company warned that if the market value of Bitcoin declines significantly, it may not be able to return to profitability in future periods and may affect its ability to meet financial obligations.

Additionally, as the company adopts the new FASB fair value accounting rules starting January 1, 2025, Strategy warned that, under the Inflation Reduction Act, the unrealized fair value gains on its Bitcoin holdings may be subject to a 15% corporate minimum alternative tax (CAMT). Unless the Inflation Reduction Act is amended or provides tax relief, the company may face significant cash expenditure obligations starting in 2026, which would have a substantial impact on its financial condition.