On Tuesday (December 24), after Bitcoin rebounded to $95,509, it slightly retreated to around $94,000, oscillating as bulls and bears fiercely contested control. Wall Street's listed whale MicroStrategy purchased an additional 5,262 Bitcoins and will hold a special shareholder vote to sell more shares to buy Bitcoin. Its founder, Saylor, envisions that Trump's Bitcoin strategy could offset the U.S. debt of $81 trillion.
According to Watcher.Guru, MicroStrategy purchased another 5,262 Bitcoins for $561 million.
According to an announcement from MicroStrategy, the company bought 5,262 Bitcoins for approximately $561 million between December 16 and December 22, 2024, at an average price of $106,662. As of December 22, 2024, MicroStrategy and its subsidiaries hold a total of 444,262 Bitcoins, with a cumulative purchase cost of about $27.7 billion, at an average price of $62,257 per Bitcoin.
MicroStrategy will also hold a special shareholder vote to sell more shares to purchase more Bitcoin.
According to Bitcoin News, MicroStrategy announced a special shareholders' meeting aimed at accelerating the 21/21 plan, simplifying the financing process, and aligning director compensation with the company's Bitcoin-centered strategy. Key proposals include:
1. Increase the authorized Class A shares from 330 million to 10.33 billion shares to support future financing.
2. Increase the authorized preferred shares from 5 million shares to 1 billion shares to expand financing options.
3. Amend the 2023 equity incentive plan to provide automatic stock awards for new directors joining the board.
Saylor released a proposal for a digital asset framework targeting the United States over the weekend, which includes a plan to establish a Bitcoin reserve, emphasizing that this move could bring up to $81 trillion in wealth to the U.S. Treasury. He wrote, "A strategic digital asset policy can strengthen the dollar's position, offset national debt, and make the U.S. a global leader in the digital economy of the 21st century, supporting millions of businesses, driving growth, and creating trillions of dollars in value."
According to Saylor's proposed digital asset framework, he calls for the U.S. to establish a strategic Bitcoin reserve, claiming that this move could create between $16 trillion and $81 trillion in wealth for the U.S. Treasury and provide a viable path to offset national debt. The digital asset framework also categorizes digital assets into six major types: digital commodities (Bitcoin), digital securities, digital currencies, digital tokens, non-fungible tokens (NFTs), and asset-backed tokens.
This framework aims to set clear roles for issuers, exchanges, and holders, defining the rights and responsibilities of each type of participant while emphasizing that no participant is allowed to lie, deceive, or steal. The framework also proposes a streamlined compliance approach and limits compliance costs, with the compliance cost for token issuance capped at 1% of asset management and annual maintenance costs at 0.1%.
Saylor emphasized that digital asset regulation must prioritize efficiency and innovation over friction and bureaucracy, advocating for compliance led by the industry rather than direct regulation by regulatory agencies. He believes the U.S. has the opportunity to catalyze a revival of 21st-century capital markets, unleashing trillions of dollars in value creation potential.
The framework's goals include reducing the cost of token issuance from millions of dollars to thousands, expanding market participation from 4,000 listed companies to 40 million businesses, and emphasizing rapid asset issuance. The ultimate goal is to help the dollar become the global digital reserve currency while seeking to expand the global digital capital market size from $20 trillion to $280 trillion, making American investors the primary beneficiaries.
However, negative news has emerged from the U.S. market. According to Bloomberg, the IRS has reiterated that cryptocurrency staking should be taxable, stating that tax liability arises as soon as staking rewards are received. This news comes during the legal proceedings between Tennessee couple Joshua and Jessica Jarrett and the IRS regarding staking tax issues. The couple staked on the Tezos network and argued that staking rewards should not be taxed until sold.
In court documents dated December 20, the IRS dismissed the Jarretts' claim that staking creates 'new property' and that taxes should only be applied upon sale. The government stated, 'Once cryptocurrency staking is completed, tax liability should arise immediately.' This case is currently under close scrutiny by the cryptocurrency industry and could significantly impact how staking rewards are taxed on all proof-of-stake blockchains in the U.S.
According to guidelines released by the IRS in 2023, block rewards obtained from staking or mining are considered taxable income at the time they are generated, and tax liability is based on their market value at that time.
Bitcoin Technical Analysis
Economies.com stated that Bitcoin's price initially fell below $95,195 and is attempting to maintain below this level, paving the way for the next correction target of $90,750.
Bitcoin maintains a negative scenario that remains valid and active for the foreseeable future, on the condition that Bitcoin prices stabilize below $95,195 and $96,555.
