MicroStrategy and Michael Saylor Settle Tax Case for $40 Million

MicroStrategy and its founder, Michael Saylor, have reached a $40 million settlement with the District of Columbia’s prosecutor in a tax evasion case, according to The New York Times, citing court documents.

Local authorities filed a lawsuit against Saylor in August 2022, alleging that he had failed to pay over $25 million in taxes on his income since 2005.

Saylor claimed that during this period, he was a resident of other states with lower tax rates, such as Virginia and Florida. The MicroStrategy founder sought to have the lawsuit dismissed, but in March 2023, the court denied his motion.

Journalists report that officials described the case as the “largest income tax fraud” in the district’s history.

“Michael Saylor and his company deceived the District of Columbia and all its residents for years,” stated Attorney General Brian Schwalb.

The prosecution successfully demonstrated that Saylor resided in Washington, citing evidence such as:

• Luxury real estate: Saylor purchased three condominiums in Georgetown between 2006 and 2008 and spent millions on renovations;
• Yacht docks: During renovations, he spent time on one of his boats docked on the Potomac River and in other apartments in the state;
• Social media posts: The MicroStrategy founder himself posted content revealing his location, including his Georgetown apartment.

Saylor continues to deny any wrongdoing:

“Florida remains my home, and I continue to dispute the claims that I was ever a resident of the District of Columbia. I agreed to settle this matter to avoid further legal burdens for my friends, family, and myself,” he noted.

In 2022, Saylor stepped down as CEO of MicroStrategy following the initiation of the tax case. He remained on the board of directors, with Phong Le taking over as CEO.

In March 2024, the company acquired an additional 12,000 BTC, and a month later, it purchased 122 BTC more.