Strategy Approves Daily Dividends for Bitcoin Buyers
The change is meant to improve STRC’s liquidity and could give Strategy room to buy Bitcoin again. The company stayed on the sidelines last week, while ETFs remain the biggest source of demand.
Key Takeaways
- Strategy got approval for daily dividend payments on four preferred stocks after a 99.3% vote in favor of the change.
- The first change takes effect on November 1 for STRC; three other preferred stocks will follow in January if execution goes according to plan.
- Strategy went a week without buying Bitcoin and used $204.9 million to buy back STRC shares, while it holds 848,517 BTC.
Strategy, Michael Saylor’s company, has received approval for daily dividend payments on four preferred stocks. That could reopen an important funding route for new Bitcoin purchases after the company went a week without buying BTC.
Shareholders voted 99.3% in favor of the change on Wednesday, October 28, according to Saylor and an SEC filing. For investors in the preferred shares, the main change is the payment frequency: the annual dividend rates stay the same, but the payouts will be smaller and paid more often.
STRC Gets the First Change
The first round takes effect on November 1 for Strategy’s flagship Stretch, ticker STRC. That stock currently offers an annual dividend of 12%. Three other preferred stocks will follow in January if execution goes according to plan.
STRC is designed to trade around $100 (€90) per share. The closer the price gets to that level, the easier it is for Strategy to raise new money by issuing more shares. According to the company, the new dividend structure should help with that because it can improve liquidity and attract more buyers.
Bitcoin Purchases Remain Uncertain
The question now is whether Strategy will buy Bitcoin again this week. Between October 19 and 25, the company did not buy any BTC, but it used $204.9 million (€184 million) to buy back STRC shares. As of October 25, Strategy still had $242.4 million (€218 million) in free operating cash.
The company holds 848,517 BTC, making it the world’s largest corporate Bitcoin holder, with an average purchase price of about $75,537 (€67,800) per coin. At the same time, funding through preferred stock brings extra dividend obligations, which could limit the company’s financial flexibility.
Why This Matters for Investors
For regular shareholders, the effect is indirect. If demand for preferred shares picks up, Strategy may find it easier to raise capital for additional Bitcoin purchases, and that remains relevant for MSTR’s valuation. At the same time, the company’s influence on the broader crypto market has become smaller, because ETFs have been the main buyers of Bitcoin since August according to Coinbase Institutional.
That makes the move especially interesting as a signal of how Strategy keeps funding its Bitcoin strategy. The company’s stock has historically moved more sharply with Bitcoin than the coin itself, which means changes in financing also matter for Strategy’s public listing.
Earlier, pressure on STRC already sparked a similar debate about how Strategy keeps its preferred stock attractive to investors.
