How Much Does Hayden Davis Owe In Taxes?

Hayden Davis has been lying low since he rugged the world on $LIBRA and $MELANIA earlier this year, extracting more than $100 million from an industry of morally upstanding citizens, like Rushi Ma... Dave Por... Jesse Pol... you know what, never mind.

Anyway, surely he’s going to pay taxes on this, right?

So, how much does Hayden owe? And what could he do to minimize that burden?

Let's do the math. Hayden cashed out at least $116 million, which the IRS would classify as short-term capital gains. Short-term gains are taxed as ordinary income, placing him in the highest federal tax bracket of 37%. Let’s assume he’s based somewhere expensive like California (you can just see it on him, can’t you?). With a state tax rate approaching 13.3%, his total tax liability could surpass $58 million. Woof.

We’re not expecting to get a DM from Hayden for help on his taxes anytime soon, but what if Hayden decided to play by the rules?

First off, he'd need meticulous record-keeping. Every trade, every swap, every wallet interaction would require proper documentation. Crypto tax software like Awaken could help him accurately report those trades and establish clear cost bases for his assets. By creating a robust paper trail, verifiable on the blockchain, Awaken could potentially save him millions, especially if he can report any capital losses from other trades - but let’s be honest, he probably doesn’t have many of those.

He might also explore strategic moves like charitable donations (this sounds on brand for him, right?) to offset his taxable income. Perhaps a timely contribution to crypto-friendly nonprofits or philanthropic DAOs would partially cleanse his public image and offer tax benefits simultaneously.

Hayden could even consider investing in opportunity zones - government-designated economically distressed areas - to defer, reduce, or even eliminate taxes on those gains, assuming he plans to keep a lower profile and pivot toward legitimacy.

Ok. Let’s be serious. This dude better full port that $100 mil into $TRUMP coin and get a sitdown. Hearing Chamath can help him with this.

Good luck, Hayden. And if you’re reading this, slide into our DMs so we can sort this out for you. We’ll give you a nice discount code; I hear Solana trades were free this year.