Odaily Planet Daily reports that Bitcoin Treasury Company Strategy announced that, based on the scale related to U.S. federal income tax, all dividend distributions of its preferred stock in 2025 will be considered tax-free return of capital (ROC) within the shareholder’s corresponding tax basis. This information has been disclosed through Form 8937. The distributions will be treated as a return of capital and will accordingly reduce the shareholder’s tax basis in the related preferred stock instruments. If the distribution exceeds the tax basis, it will be treated as a capital gain. Strategy further stated that in 2025, it raised approximately $5.5 billion through five perpetual preferred stock offerings, followed by an additional approximately $1.9 billion through an ATM plan, with a total fundraising of about $7.4 billion. To date, the company has paid approximately $413 million in dividends, corresponding to a weighted annualized dividend rate of about 9.6%.
Strategy expects that there is currently no accumulated earnings and profits (E&P) under U.S. tax law, so it is anticipated that the preferred stock distributions will continue to be treated as ROC for a longer period (possibly over 10 years). However, the final tax outcome may be adjusted based on the company’s financial situation, and different investors may experience varying tax scenarios. (Businesswire)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Solv Protocol Integrates Utexo to Launch Native Bitcoin Yield Solution on RGB and Lightning Network
Solv Protocol and Utexo have partnered to create a Bitcoin yield solution using the RGB protocol and Lightning Network, allowing direct BTC and USDT swaps while prioritizing self-custody and privacy. Solv also invested in Utexo's recent funding round led by Tether.
GateNews9m ago
Bitcoin bull market index rises to 40 points; Bloomberg: the U.S. and Iran are considering extending the ceasefire agreement by two weeks
Bitcoin’s price as of April 16 is approaching $74,700. The Bullish Sentiment Index (BSI) has risen to 40 points, indicating a rebound in market sentiment. The United States and Iran are evaluating options to extend the current ceasefire agreement, and they are also discussing navigation issues in the Strait of Hormuz, as diplomatic negotiations continue.
MarketWhisper30m ago
Tether Adds $70M Bitcoin Reserve, Increases Holdings to 97,141 BTC
Tether has transferred 951 BTC valued at approximately $70 million to its Bitcoin reserve, increasing its total holdings to 97,141 BTC worth about $7.16 billion. This move aligns with Tether's strategy of investing 15% of operating profits into Bitcoin.
GateNews53m ago
BlackRock Withdraws 3,446 BTC from Major CEX in 8 Hours, Worth $255.2M
BlackRock withdrew 3,446 BTC, worth about $255.2 million, from a major CEX, signaling ongoing institutional accumulation in the Bitcoin market.
GateNews1h ago
BTC 15-minute up 0.46%: spot trading volume expansion and derivatives long position buildup as two drivers
From 2026-04-15 19:30 to 19:45 (UTC), the BTC price fluctuated between 74,706.2 and 75,276.9 USDT. Within 15 minutes, the return reached +0.46%, and the range was 0.76%. Trading activity in the market for this window was active: spot trading volume rose 18% compared with the previous hour’s average. Volatility increased in the short term, and overall market attention improved.
The main drivers behind this abnormal move are the short-term amplification of spot market trading volume and the coordinated increase in long positions in the derivatives market. Derivatives futures open interest (Open Interest) during this period, on a month-over-month basis,
GateNews5h ago
