The Slovak Parliament has approved new legislation that will allow citizens to pay significantly lower taxes on cryptocurrencies. The move is the result of a proposal put forward by a group of MPs from the SaS and OĽaNO parties. The new measures aim to simplify the use of virtual currencies in everyday life and encourage investment and savings among the population. It is these changes that could make a significant contribution to long-term investment and pan-European retirement savings.
Changes to the Income Tax Act will reduce the tax burden on the sale of virtual currencies. Income from the sale of cryptocurrencies will only be taxed at a reduced 7% tax rate after one year from acquisition. However, if a cryptocurrency is sold within one year of acquisition, the proceeds of that sale will be included in the tax base along with other income. Similar changes apply to income from the sale of capital assets by collective investment undertakings.
Another significant change is the exemption for income not exceeding EUR 2 400 from the exchange of virtual currency for property or services. The amendment also doubles the maximum amount of funds that can be invested in long-term savings in one calendar year to EUR 6 000. Finally, the amendment to the Collective Investment Schemes Act expands the possibilities for investing in alternative investment funds by increasing the proportion of assets that such funds can hold from qualified investors from 20% to 30%. These changes should give citizens more flexibility in investing and minimise the tax burden.
MicroStrategy has purchased $347 million worth of Bitcoins
On June 28, software analytics company MicroStrategy announced a corporate purchase of 12,333 Bitcoins worth $347 million. Following the transaction, the total number of Bitcoins held by MicroStrategy rose to 152,333 ($4.52 billion), at an average purchase price of $29,668 apiece.
This average purchase price is close to the $28,136 purchase price quoted on the day the purchase was announced. These coins were purchased between April 27 and June 27. The purchase was financed in part by the issuance of new shares, the company said. As of June 28, MicroStrategy had issued and sold a total of 1,079,170 shares for total net proceeds of $337 million. MicroStrategy has been actively buying Bitcoins using cash and equity financing during bear markets, sometimes without regard to its current price. In the first quarter of 2023, the company reported its first profitable quarter since 2020 thanks to a one-time tax receipt.
The company is led by Michael Saylor, who is a prominent Bitcoin advocate and has been at the forefront in adopting the world's largest cryptocurrency as a strategic asset.
Riot Platforms to add 33,000 Bitcoin miners before halving 2024
Riot Platforms, one of the world's largest Bitcoin mining companies, is set to add 33,280 "next-gen" Bitcoin miners to its Texas fleet, costing $162.9 million. The mining equipment was acquired from manufacturer MicroBT and will increase the firm's standalone mining capacity by 7.6 exahashes per second (EH/s), ahead of the next Bitcoin halving, which is set to take place in mid-2024.
According to Riot Platforms CEO Jason Les, the deal is expected to increase the firm's standalone mining capacity to 20.1 EH/s when the machines are installed in the first quarter of 2024. Riot Platforms also said it could purchase an additional 66,560 models of these "next-gen" miners by December 31, 2024, adding 15.3 EH/s to the firm's mining capacity.