Washington DC sues Bitcoin bullish firm Microstrategy, Here is why?

DC authorities claimed that business intelligence firm Microstrategy evaded over $25 million in D.C. taxes.

Microstrategy is a business intelligence firm, which is popular in the crypto industry because it decides to hold Bitcoin on the balance sheet of the company. At the moment, company is holding around 130k Bitcoins and also aimed to make Microstrategy a multi-million Bitcoin holder company.

On 31 August, Karl Racine, Attorney General, took to Twitter to inform that Microstrategy firm evaded a total of $25 million and the company was sued by the D.C authorities.

The tweet noted that Microstrategy founder Michael Saylor spent around 10 years in Washington DC and never paid “DC income tax”. 

So basically, DC authorities sued the Company and its founder. 

Further DC General attorney warned all the citizens to remain honest & pay taxes while living in DC. 

Around a month ago, Saylor left the role of Microstrategy CEO because of unknown reasons. However, Saylor confirmed that he left the CEO role because he was willing to give full time to the Bitcoin-related initiative for the company to benefit from Bitcoin holdings.

Few media reports claimed that Saylor stepped down from the CEO position because he was facing criticism during the significant downfall in the price of Bitcoin. 

At present, the stock price of Microstrategy (MSTR) is $214.2 and it is 61% down over the last month of time frame. Perhaps the majority of the big cap assets are under significant downfall but here the situation for Microstrategy stock seems much worse. MSTR plunged more rapidly in the last few months over the past year.

Read also: JPMorgan strategist suggests avoiding Bitcoin investment