Odaily Planet Daily reports that Strategy announced that by 2025, the company will have raised approximately $7.4 billion through its perpetual preferred stock instrument (digital credit), and has already paid out a total of $413 million in distributions.
The announcement shows that in 2025, Strategy completed 5 IPOs of digital credit instruments, raising about $5.5 billion, and subsequently raised an additional approximately $1.9 billion through an ATM (at-the-market) plan. The weighted annualized dividend yield for these instruments is approximately 9.6%.
Strategy also stated that, regarding U.S. federal income tax, the distributions paid by the company to preferred stock instruments in 2025 are considered tax-free return of capital, as long as they do not exceed the shareholders’ tax basis. The company expects that, for the foreseeable future (10 years or more), these distributions will continue to be treated as return of capital.
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Strategy: Raise $7.4 billion through digital credit fundraising by 2025, with a total of $413 million already paid out in distributions.
Odaily Planet Daily reports that Strategy announced that by 2025, the company will have raised approximately $7.4 billion through its perpetual preferred stock instrument (digital credit), and has already paid out a total of $413 million in distributions.
The announcement shows that in 2025, Strategy completed 5 IPOs of digital credit instruments, raising about $5.5 billion, and subsequently raised an additional approximately $1.9 billion through an ATM (at-the-market) plan. The weighted annualized dividend yield for these instruments is approximately 9.6%.
Strategy also stated that, regarding U.S. federal income tax, the distributions paid by the company to preferred stock instruments in 2025 are considered tax-free return of capital, as long as they do not exceed the shareholders’ tax basis. The company expects that, for the foreseeable future (10 years or more), these distributions will continue to be treated as return of capital.