by Coinstrooper Crypto Articles
Quick Take
  • Shareholders backed the change on Wednesday, October 28, with 99.3% of votes cast in favor, according to Saylor and an SEC filing.
  • In simple terms, investors holding Strategy’s preferred shares will receive smaller, more frequent payments instead of waiting weeks or months.
  • The company’s flagship Stretch (STRC) stock, currently offering a 12% annual dividend, switches on November 1.
  • Three other preferred stocks follow in January, subject to final implementation.

What Happened

In simple terms, investors holding Strategy’s preferred shares will receive smaller, more frequent payments instead of waiting weeks or months. Annual dividend rates remain unchanged.

But issuing preferred stock creates additional dividend obligations. Investors must also consider Bitcoin’s price and the company’s financing costs.

Market Context

STRC targets $100 per share. The closer it trades to that price, the easier it becomes for MicroStrategy to raise fresh money by issuing more shares.

Daily dividends could attract buyers and help stabilize STRC’s price. Strategy says the change should improve liquidity.

Does Bitcoin’s Market Still Care?

It bought just 267 BTC in the week before its pause, worth $22.1 million. Bitcoin now sees tens of billions of dollars in daily trading.

Strategy’s purchases still matter to long-term supply. For the wider market, ETF demand and macroeconomic conditions increasingly carry more weight.

Why It Matters

Stronger demand for preferred shares could give Strategy more money to buy Bitcoin, supporting its accumulation strategy and potentially MSTR’s valuation.

Details

Michael Saylor’s MicroStrategy (now Strategy) has approved daily dividend payments across four preferred stocks, potentially reopening a major funding route for Bitcoin purchases after a week of buying nothing.

Shareholders backed the change on Wednesday, October 28, with 99.3% of votes cast in favor, according to Saylor and an SEC filing.

The company’s flagship Stretch (STRC) stock, currently offering a 12% annual dividend, switches on November 1. Three other preferred stocks follow in January, subject to final implementation.

Will MicroStrategy Start Buying Bitcoin Again?

That is the bigger question.

Strategy bought no Bitcoin between October 19 and 25. Instead, it spent $204.9 million repurchasing STRC shares.

The company holds 848,517 BTC, but its preferred-stock funding model has faced pressure.

However, another Bitcoin purchase this week remains uncertain. The vote creates no immediate cash, and Strategy had just $242.4 million in unrestricted operating cash as of October 25.

What Happens to MSTR Stock?

For common shareholders, the potential benefit is indirect.

Strategy’s buying power remains substantial, although its recent purchases have become relatively small.

Coinbase Institutional research shows ETFs have overtaken corporate treasuries as Bitcoin’s main buyers since August.

The post MicroStrategy Approves Daily Dividends. Will Bitcoin Buying Return? appeared first on BeInCrypto.