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

ME News: On March 31 (UTC+8), Strategy’s preferred shares STRC were 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 significant tax burdens. In the United States, STRC’s monthly dividends are classified as a return of capital (ROC), which are not taxed; but in the UK, brokers typically categorize them as offshore dividends, subject to income tax at the marginal dividend tax rate—8.75% for basic-rate taxpayers and up to 39.35% for high earners. When selling, investors must also pay capital gains tax (CGT), resulting in an estimated net yield of only about 10%. Crypto analyst James Van Straten recommends UK investors consider the 21Shares Strategy Yield ETP listed on the Euronext exchanges in Amsterdam and Paris. This product has zero management fees, employs an accumulating structure with automatic reinvestment of returns rather than cash distribution, and when sold, usually only requires paying CGT without income tax obligations—significantly improving tax efficiency. (Source: ChainCatcher)