Strategy: Raised a total of $7.4 billion through digital lending by 2025, with $413 million in distribution payments already made

BlockBeats News, February 3, according to an official announcement, Strategy announced today that, for U.S. federal income tax purposes, 100% of the distributions paid by the company on its preferred equity instruments during the 2025 fiscal year, to the extent not exceeding the shareholder's tax basis in the corresponding preferred equity instrument, will be recognized as tax-free return of capital.

In 2025, Strategy completed five initial public offerings (IPOs) of perpetual preferred securities ("Digital Credit"), raising a total of $5.5 billions in funds. Subsequently, through the ATM (at-the-market offering) program, the company raised an additional $1.9 billions in total funds for the digital credit instruments. To date, Strategy has paid a cumulative $413 millions in distributions on these instruments, corresponding to a weighted annualized dividend yield 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 this year or the foreseeable future. Based on this assessment, Strategy expects that distributions on its preferred equity instruments will continue to be regarded as return of capital for the foreseeable future (i.e., 10 years or longer).