This article first appeared on GuruFocus.

Strategy Inc. (NASDAQ:MSTR) shares moved higher in premarket trading Wednesday, climbing as much as 3.7%, after the Bitcoin treasury company founded by Michael Saylor signaled it would not fall under the US corporate alternative minimum tax. The shift follows new interim guidance from the Treasury Department and IRS, which allows corporations to disregard unrealized gains and losses on digital assets when determining exposure to the 15% levy. Without this relief, Strategy had anticipated entering the regime in 2026 as Bitcoin’s rise this year pushed its reported asset values higher.

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The company, once known as MicroStrategy, had adopted new accounting standards in January requiring fair value reporting for its Bitcoin holdings. That shift led to an $8.1 billion unrealized gain through the first half of the year, according to company filings. With a total Bitcoin position valued at around $74.6 billion, the accounting treatment had previously risked triggering the tax. The updated IRS position now means those paper gains will not automatically count toward the billion-dollar threshold, altering the financial outlook for the firm.

For investors, the development could ease concerns about a new tax drag on earnings and free Strategy to focus on balance sheet priorities. The company has long pitched itself as a proxy for Bitcoin exposure, and with regulatory clarity now shifting in its favor, the stock’s premarket rally reflects optimism that its large crypto holdings could be positioned more effectively for the years ahead.