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by gxon
2018 days ago
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Tax advantage? If you pay out a dividend, you force your shareholders to pay income tax rates. But, if you can use company profits in a way that pumps the stock valuation, your shareholders can effectively take the same profits with long term cap gains tax. My understanding is that a stock buyback is basically this strategy, and MicroStrategy's CEO has said that he also considered that. MSTR is up ~100% since they first bought bitcoin. This is at least, my amateur understanding that could be wrong. |
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