The stock of MicroStrategy plummeted after its founder Michael Saylor was accused of tax evasion.
According to data from Google Finance, MicroStrategy stock (MSTR) is down 7.26% today. The asset class has continued to wither the storm against the lawsuit slammed against Saylor by D.C. Attorney General Karl A. Racine D.
At the time of writing, MSTR is trading at around $214.62. While the lawsuit is considered a major cause of the MSTR price decline, it is also possible that the asset class is down following a slight dip in Bitcoin – an investment vehicle to which MicroStrategy is heavily linked.
However, the major reason for MSTR’s recent bloodbath is the tax evasion lawsuit slammed against Saylor.
D.C. Attorney General Announces Tax Evasion Suit Against Saylor.
NEW: Today, we’re suing Michael Saylor – a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes – for tax fraud.
— AG Karl A. Racine (@AGKarlRacine) August 31, 2022
According to the charges, Saylor has resided in D.C. for over a decade and has evaded income taxes to the tune of $25 million. D.C. authorities also alleged that MicroStrategy helped him evade paying tax by falsely reporting his address to relevant authorities.
Saylor, a Bitcoin proponent, had falsely claimed to be a resident of lower-tax jurisdiction despite residing in a 7,000-square-foot penthouse on the Georgetown waterfront. The property was allegedly acquired by Saylor in 2005, with the MicroStrategy CEO also alleged to have bought two other properties and merged them into a single unit.
“Since at least 2012, Saylor has bragged to his confidants about his successful plan to create the illusion of residing in Florida to evade the District’s personal income taxes,” an excerpt from the complaint reads.
Responding to the charges, Saylor denied the charges, saying:
“Although MicroStrategy is based in Virginia, Florida is where I live, vote, and have reported for jury duty, and it is at the center of my personal and family life. I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts.”