According to a CoinDesk study, cryptocurrency miners planning to go public will likely encounter difficulties in the coming months as bitcoin price falls due to crypto tax. The decline in cryptocurrency prices may damage Core Scientific, which plans to go public through a combination with Power & Electronic Infrastructure Acquisition Corp. through a SPAC.
The bitcoin mining company Rhodium Enterprises, due to cryptocurrency tax, is also preparing to go public with an IPO valued at over $2 billion. Since their all-time high in November of last year, Bitcoin values have fallen by roughly 30%, coupled with a slowdown in investors and miners going public.
David Johnston, a crypto entrepreneur, and investor relocated his family to Puerto Rico in March 2021. He has been working in the cryptocurrency industry since 2012 and believes in the move for low taxes on mining cryptocurrency.
Moreover, Puerto Rico's crypto-friendly rules include significant tax advantages for residents who spend at least 183 days a year on the island, making it a year-round tropical haven with stunning beaches. Residents can maintain their American passports while avoiding capital gains taxes. It undoubtedly aided in sealing the deal for Johnston, yet the greater motivator was taxes on crypto mining and overpowering fear of losing out.
Puerto Rico crypto tax that is almost too good to be true was devised a decade ago to assist the island in regaining citizens and revenue when it was losing both. Earthquakes, storms, multi-year bankruptcies, and a worldwide epidemic have plagued the area during the past several years. This is great news for the government, as investors are flooding in at an unprecedented rate because of crypto tax.
Giovanni Mendez, a corporate and tax attorney, has been assisting new Puerto Ricans' incorporation. Nearly half of his clients are either crypto firms or crypto investors, and he tells CNBC, a ratio that has grown rapidly in the previous six years.
The COVID epidemic, which began to shut down governments throughout the world in March 2020, prompted Mendez, who was reared in a village two hours west of Puerto Rico's capital San Juan, to begin talking with customers about whether they should migrate to Florida (a tax-free state) or Puerto Rico. In the end, many people chose Puerto Rico as their preferred destination to save crypto tax.