UK investors purchasing STRC face double taxation; 21Shares ETP may be a better alternative.

Mars Finance news: Strategy’s preferred stock STRC listed on the UK trading platform Trading 212 on March 30, with an annualized yield of approximately 11.5%. However, UK investors holding STRC directly may face pressure from heavy taxation. In the U.S., STRC’s monthly dividend payments are classified as return of capital (ROC) and no tax is required. In the UK, brokers typically categorize it as foreign dividends, which are subject to income tax based on the marginal dividend tax rate. For basic-rate taxpayers it is 8.75%, while for higher earners it can be as high as 39.35%. When selling, investors must also pay additional capital gains tax (CGT), so the estimated actual net yield rate is only about 10%. Crypto analyst James Van Straten suggests that UK investors instead consider the 21Shares Strategy Yield ETP, which is listed on Euronext in Amsterdam and Paris. This product has a management fee of zero and uses an accumulating structure: returns are automatically reinvested rather than paid out in cash. When sold, it typically only requires CGT, with no income tax burden, making the tax efficiency significantly better.