Strategy: By 2025, a total of $7.4 billion has been raised through digital lending, with $413 million already paid out in distributions.

On February 3, Strategy announced via an official statement that for U.S. federal income tax purposes, 100% of the distribution payments made to its preferred equity instruments in fiscal 2025 qualify as tax-free returns of capital, up to the amount of each shareholder’s corresponding tax basis in those instruments. In 2025, Strategy completed five initial public offerings (IPOs) of its perpetual preferred stock securities ("digital credits"), raising a total of $5.5 billion. The company has since raised an additional $1.9 billion through its At-The-Market (ATM) program for these digital credit instruments. To date, Strategy has paid cumulative distributions of $413 million on these instruments, translating to a weighted average annualized dividend yield of approximately 9.6%. Strategy noted that it currently has no accumulated earnings and profits (E&P) and does not expect to generate current E&P in the current year or the foreseeable future. Based on this assessment, the company anticipates distribution payments on its preferred equity instruments will continue to be treated as returns of capital for the foreseeable future (i.e., 10 years or longer).