Strategy: Preferred stock dividend distribution in 2025 will be treated as tax-free capital return According to a report by Golden Finance, Strategy, a Bitcoin treasury company, announced that based on the size of the US federal income tax, all dividend distributions on its preferred stock in 2025 will be considered as tax exempt capital returns (ROC) within the shareholder's corresponding tax base. Relevant information has been disclosed through Form 8937, and the distributions will be considered as capital returns and correspondingly reduce the shareholder's tax base in the relevant preferred stock instruments. If the distribution amount exceeds the tax base, it will be treated as capital gains. Strategy added that it has raised approximately $5.5 billion through five perpetual preferred stock offerings in 2025, followed by an additional $1.9 billion through the ATM program, with a cumulative fundraising scale of approximately $7.4 billion. As of now, the company has paid approximately $413 million in dividends, corresponding to a weighted annualized yield of approximately 9.6%. Strategy expects that there is currently no cumulative surplus (E&P) in the sense of US tax law, so it is expected that the ROC tax treatment method may still be maintained for preferred stock distributions over a longer period of time (possibly more than 10 years) in the future. However, the final tax results may still be adjusted according to changes in the company's financial situation, while reminding different investors that there may be differentiated tax situations.