As per Coindesk, Japanese Digital Asset Treasury (DAT) firms consistently outperform Bitcoin due to favorable tax treatment of equity gains over crypto profits. In Japan, crypto profits are taxed at up to 55%, while equity gains are taxed at around 20% with loss carryforwards allowed. This creates a financial incentive for investors to buy shares of BTC-holding companies to avoid high crypto taxes. Meanwhile, U.S. DATs typically trade closer to their BTC holdings due to a neutral tax environment. Regulators in Japan and other Asian countries are growing concerned about the risks of the DAT model, and Japan’s tax authority is considering changes that could reduce the tax advantage.
Japanese Bitcoin Treasury Firms Outperform BTC Due to Tax Incentives
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