**[Strategy: 2025 Preferred Stock Dividend Distribution to Be Treated as Tax-Free Return of Capital]** Odaily Planet Daily reports that Bitcoin treasury company Strategy has announced that, in accordance with U.S. federal income tax regulations, all dividend distributions for its preferred stock in 2025 will be treated as tax-free Return of Capital (ROC) within the scope of shareholders' respective tax bases. Relevant information has been disclosed via Form 8937. The distribution amounts will be considered a return of capital and will accordingly reduce shareholders' tax bases in the related preferred stock instruments. If the distribution amount exceeds the tax base, it will be treated as a capital gain. Strategy further stated that it has raised approximately $5.5 billion through five perpetual preferred stock offerings in 2025, followed by an additional $1.9 billion raised through an ATM program, bringing the total fundraising to approximately $7.4 billion. To date, the company has paid out approximately $413 million in dividend distributions, corresponding to a weighted annualized dividend yield of about 9.6%. Strategy expects that there is currently no accumulated earnings and profits (E&P) under U.S. tax law, and therefore anticipates that preferred stock distributions may continue to be treated as ROC for an extended period (potentially over 10 years). However, the final tax outcome may still be subject to adjustments based on the company's financial condition. The company also reminds investors that individual tax situations may vary. (Businesswire)