TLDR
- Strategy stock rose 2.7% in premarket trading after receiving favorable tax guidance from the Treasury and IRS
- The company will no longer face the 15% corporate alternative minimum tax due to new rules on unrealized crypto gains
- Treasury guidance issued September 30 clarified that unrealized cryptocurrency gains or losses don’t count toward adjusted financial statement income
- Strategy had previously expected to face the CAMT starting in 2026 due to unrealized gains on digital assets as of June 30
- The company also increased its preferred stock dividend rate from 10.00% to 10.25% effective October 1, 2025
Strategy stock moved higher in premarket trading after the company announced it dodged a potential tax headache. The 2.7% gain came after Strategy said it no longer expects to fall under the corporate alternative minimum tax.
The news arrived thanks to fresh guidance from the Treasury Department and IRS. On September 30, regulators clarified how they plan to treat unrealized cryptocurrency gains and losses.
Under the new interpretation, these gains or losses may not count toward adjusted financial statement income. That’s the key metric used to determine whether a company faces the 15% corporate alternative minimum tax.
Strategy had been staring down the CAMT starting in 2026. The company expected to hit the threshold because of unrealized gains on its digital asset holdings as of June 30.
But the September 30 guidance changed everything. Strategy now plans to exclude unrealized gains and losses from its AFSI calculations.
This effectively takes the company out of range for the tax. The CAMT was introduced through the Inflation Reduction Act.
It applies to corporations with average annual adjusted financial statement income exceeding $1 billion over three years. Strategy’s substantial digital asset portfolio had put it at risk.
Tax Rules Get an Update
Treasury and the IRS plan to issue revised proposed regulations that align with this interim guidance. The clarification represents a major regulatory shift for companies holding large cryptocurrency positions.
For Strategy, the timing couldn’t be better. The company has been building its Bitcoin holdings and would have faced tax bills on paper gains.
The new rules mean those unrealized gains won’t trigger the corporate minimum tax. Strategy isn’t just celebrating tax relief.
The same day as the tax clarification, the company made another move. On September 30, Strategy announced an increase in its preferred stock dividend rate.
Dividend Gets a Bump
The annual dividend rate for Variable Rate Series A Perpetual Stretch Preferred Stock went up from 10.00% to 10.25%. The new rate took effect October 1, 2025.
Strategy declared a cash dividend of $0.854166667 per share for the month ending October 31, 2025. This reflects the increased annual rate.
The dividend adjustment shows the company making strategic financial decisions. The move could appeal to preferred stockholders looking for income.
Strategy’s market capitalization stands at $92.56 billion. The company’s average trading volume runs at 11,713,802 shares.
Technical indicators show a buy signal for the stock. However, analyst ratings tell a different story.
The most recent analyst rating on Strategy stock is a Sell with a $175.00 price target. Financial analysis points to high leverage and cash flow challenges.
The company’s valuation also raises questions about potential overpricing. Yet the earnings call provided positive guidance.
Strategy highlighted its Bitcoin holdings during the presentation. The company’s technical sentiment signal remains at Buy.
The September 30 tax guidance and dividend increase both took effect at the start of October 2025.
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