MicroStrategy Pauses Bitcoin Buys After 13 Weeks, UK Investors Face 39.35% STRC Tax
MicroStrategy paused Bitcoin purchases for the first time in 13 weeks, raising questions about its reserve accumulation strategy and stock-based yield. UK investors buying its 11.5% yielding STRC preferred shares face income-tax treatment up to 39.35%, prompting a shift toward the tax-efficient 21Shares accumulating ETP on Euronext.
1. Bitcoin Purchase Pause
MicroStrategy skipped purchasing Bitcoin for the first time in 13 weeks, breaking its continuous accumulation streak. This pause may signal a shift in capital deployment strategy and could influence investor sentiment on the company’s core Bitcoin-exposure thesis.
2. Double Tax Issue on STRC
The company’s Series A perpetual preferred shares (STRC) yield roughly 11.5% and trade near $100 par, but UK brokers classify monthly distributions as foreign dividends. Outside an ISA, UK investors pay up to 39.35% income tax on each payment plus Capital Gains Tax on eventual sale.
3. Tax-Efficient ETP Alternative
UK investors are being steered to the 21Shares Strategy Yield ETP, domiciled in Switzerland with a 0.00% management fee and an accumulating structure. By reinvesting distributions into NAV, the ETP avoids cash dividend treatment and subjects only gains on sale to UK Capital Gains Tax.