Bitcoin24h $75,998.50-2.93%

Ethereum24h $2,236.08-2.65%

BNB24h $749.82-3.04%

XRP24h $1.59-1.13%

Solana24h $96.22-6.71%

TRON24h $0.2854+0.93%

Dogecoin24h $0.1071-0.74%

Cardano24h $0.2959-1.05%

Bitcoin Cash24h $526.27-0.19%

Hyperliquid24h $33.64-7.22%

The looming tax bill of Strategy preferreds

Due to Return Of Capital (ROC) status, there is a looming tax bill for long-term holders of Strategy preferred shares.

Strategy’s preferred shares spell out an unfortunate acronym: FCKD

Several people have cheered on the FCKD joke, encouraging Saylor to issue a preferred stock with the ticker symbol STRU.

Strategy has to pay $689M to not sell any of its BTC, and those costs have increased every quarter since 2021.

Strategy founder Michael Saylor repeatedly promised a roll-out of STRC counterparts but instead he launched STRE.

Strategy diluted shareholders by $69.5M but bought $45.6M of BTC. These 183,501 extra shares accreted less than the proceeds to its treasury.