🔥STRC = TAX-FREE DIVIDENDS FOREVER?!?🔥
Using Bitcoin, Saylor created STRC.
It currently pays MONTHLY dividends at a variable rate that is backed by ever-appreciating Bitcoin instead of shaky cash flows.
But is it also a tax-deferred yield reactor that legally outsmarts the IRS?!?
Let's look into it:
Using Bitcoin, Saylor created STRC.
It currently pays MONTHLY dividends at a variable rate that is backed by ever-appreciating Bitcoin instead of shaky cash flows.
But is it also a tax-deferred yield reactor that legally outsmarts the IRS?!?
Let's look into it:
Traditional companies pay dividends from profits → that’s taxable income.
$STRC pays “dividends” from new equity issuance → that’s Return of Capital (ROC).
Return of Capital ≠ income.
It’s just your own basis being returned to you… tax-deferred.
$STRC pays “dividends” from new equity issuance → that’s Return of Capital (ROC).
Return of Capital ≠ income.
It’s just your own basis being returned to you… tax-deferred.
The IRS says:
ROC reduces your cost basis.
You owe tax only when you sell for more than your basis.
But here’s the catch... STRC’s share price is pegged at the $99-101 range.
They literally adjust the dividend rate to keep it there.
So when are you going to realize a large gain?
NEVER.
ROC reduces your cost basis.
You owe tax only when you sell for more than your basis.
But here’s the catch... STRC’s share price is pegged at the $99-101 range.
They literally adjust the dividend rate to keep it there.
So when are you going to realize a large gain?
NEVER.
Strategy confirmed it in their official Form 8937:
“Based on current estimates… zero earnings & profits for 2025. Accordingly, 100% of the distribution is a non-taxable return of capital.”
You read that right.
Every dollar you receive from STRC in 2025 is tax-free cash flow.
“Based on current estimates… zero earnings & profits for 2025. Accordingly, 100% of the distribution is a non-taxable return of capital.”
You read that right.
Every dollar you receive from STRC in 2025 is tax-free cash flow.
Because the share stays at $100, your basis falls but the market value doesn’t.
You’re extracting yield forever while your taxable gain floats in suspended animation.
It’s not evasion.
It’s temporal tax deferral with near-perfect price equilibrium.
You’re extracting yield forever while your taxable gain floats in suspended animation.
It’s not evasion.
It’s temporal tax deferral with near-perfect price equilibrium.
Here’s the endgame:
You receive ROC every month (no tax)
Your basis slowly declines
Price stays pegged at $99-101 range
You borrow against it if you need liquidity
You die
Your heirs get a step-up in basis
All taxes → deleted.
You receive ROC every month (no tax)
Your basis slowly declines
Price stays pegged at $99-101 range
You borrow against it if you need liquidity
You die
Your heirs get a step-up in basis
All taxes → deleted.
STRC has effectively built a synthetic perpetual bond backed by Bitcoin, funded through equity issuance, stabilized by a price peg, and wrapped in tax deferral.
It’s yield without dilution.
Income without income.
A dividend that isn’t a dividend.
It’s yield without dilution.
Income without income.
A dividend that isn’t a dividend.
While the fiat crowd fights over “qualified vs ordinary dividends,”
Strategy is literally creating perpetual Return of Capital loops powered by digital scarcity.
It’s the next evolution of corporate finance.
MONETARY RECURSION ENABLED BY BITCOIN.
Strategy is literally creating perpetual Return of Capital loops powered by digital scarcity.
It’s the next evolution of corporate finance.
MONETARY RECURSION ENABLED BY BITCOIN.
This isn’t yield farming.
This is yield alchemy.
Bitcoin collateral in, equity out, cash flow distributed, taxes deferred.
A feedback loop so elegant it almost feels illegal...
...except it isn’t.
This is yield alchemy.
Bitcoin collateral in, equity out, cash flow distributed, taxes deferred.
A feedback loop so elegant it almost feels illegal...
...except it isn’t.
STRC has turned the 20th-century dividend model into a 21st-century tax-optimized Bitcoin engine.
The fiat world still thinks “Return of Capital” means less value.
In reality, it’s the doorway to perpetual, untaxed cash flow.
Seems like you can literally just collect ~9%-10% in perpetuity without paying taxes until you die and go meet Jesus.
Welcome to the synthetic sovereign yield era. 🟧
The fiat world still thinks “Return of Capital” means less value.
In reality, it’s the doorway to perpetual, untaxed cash flow.
Seems like you can literally just collect ~9%-10% in perpetuity without paying taxes until you die and go meet Jesus.
Welcome to the synthetic sovereign yield era. 🟧
FYI, I am NOT a tax professional so this is NOT financial advice.
However, this is my read on the situation.
Seems like if the IRS decides STRC distributions resemble accelerated repayment of principal rather than true equity yield, it could fall under the fast-pay stock rules, forcing earlier income recognition or listed-transaction reporting.
Strategy itself flags this as a risk in its prospectus.
Unlikely but not impossible.
Clarification on ROC:
The IRS doesn’t care that your share price is pegged.
They track your basis.
If you receive $9 of ROC on a $100 share, your tax basis becomes $91.
When you (or your estate) eventually sell, the difference between sale price and basis is still a capital gain.
If you hold forever, great - step-up erases it.
But if you ever sell, you’ll owe tax on the built-up deferred gain.
Also, they intend to keep STRC near $100, but it’s not a legal redemption right or hard anchor.
It’s managed via yield adjustments and market confidence.
If secondary demand ever wobbles, that $100 could fluctuate a few percent, creating small realized gains/losses at sale.
Still very stable, but not mathematically guaranteed.
Right now, Strategy’s Form 8937 says zero E&P → full ROC.
But that’s not guaranteed forever.
If they sell some or pay divs from GAAP income from operations, they could develop positive E&P later.
When that happens, a slice of future payouts would become taxable dividends (ordinary income).
But as of now, to me, this sounds KILLER.
THOUGHTS?
Do your own research and let's have a dialogue about this incredible opportunity!
However, this is my read on the situation.
Seems like if the IRS decides STRC distributions resemble accelerated repayment of principal rather than true equity yield, it could fall under the fast-pay stock rules, forcing earlier income recognition or listed-transaction reporting.
Strategy itself flags this as a risk in its prospectus.
Unlikely but not impossible.
Clarification on ROC:
The IRS doesn’t care that your share price is pegged.
They track your basis.
If you receive $9 of ROC on a $100 share, your tax basis becomes $91.
When you (or your estate) eventually sell, the difference between sale price and basis is still a capital gain.
If you hold forever, great - step-up erases it.
But if you ever sell, you’ll owe tax on the built-up deferred gain.
Also, they intend to keep STRC near $100, but it’s not a legal redemption right or hard anchor.
It’s managed via yield adjustments and market confidence.
If secondary demand ever wobbles, that $100 could fluctuate a few percent, creating small realized gains/losses at sale.
Still very stable, but not mathematically guaranteed.
Right now, Strategy’s Form 8937 says zero E&P → full ROC.
But that’s not guaranteed forever.
If they sell some or pay divs from GAAP income from operations, they could develop positive E&P later.
When that happens, a slice of future payouts would become taxable dividends (ordinary income).
But as of now, to me, this sounds KILLER.
THOUGHTS?
Do your own research and let's have a dialogue about this incredible opportunity!
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