Strategy: By 2025, raise a total of $7.4 billion through digital credit, with $413 million already allocated

According to the official announcement, Strategy today announced that, for U.S. federal income tax purposes, 100% of the distributions paid on its preferred equity instruments during the 2025 fiscal year, within the limits of the shareholders' corresponding tax basis in the preferred equity instruments, will be treated as tax-free capital returns.

In 2025, Strategy completed five initial public offerings (IPOs) of perpetual preferred stock securities ("Digital Credit"), raising a total of $5.5 billion. Subsequently, the company raised an additional $1.9 billion for the digital credit instruments through an ATM (at-the-market) program. To date, Strategy has paid a total of $413 million in distributions on these instruments, with a corresponding weighted annualized dividend rate of approximately 9.6%.

Strategy stated that, for U.S. federal income tax purposes, the company currently has no accumulated retained earnings and does not expect to generate current E&P in the current year and the foreseeable future. Based on this assessment, Strategy expects that the distributions on its preferred equity instruments will continue to be treated as capital returns in the foreseeable future (i.e., for 10 years or longer).