Saylor Hints at New BTC Buy, Strategy Eyes Semi-Monthly Dividends

Saylor Hints at New BTC Buy, Strategy Eyes Semi-Monthly Dividends


Strategy co-founder Michael Saylor has hinted at another large Bitcoin purchase, just a week after the company disclosed that it bought around $1 billion of Bitcoin in the second week of April. 

Strategy disclosed last Monday that it acquired 13,927 Bitcoin for $1 billion between April 6 and 12, at an average price of $71,902 per coin, posting “Think ₿igger” the day before the filing. 

However, Saylor posted “Think Even ₿igger” on X on Sunday along with a chart of Strategy’s purchase history, something he has historically done to hint at another purchase announcement. 

It comes just days after the Bitcoin treasury company proposed to increase the frequency of dividend payments to stockholders in the hopes of stabilizing the price and growing demand.

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Source: Michael Saylor

In a video presentation to shareholders shared by Saylor on Friday, Strategy CEO Phong Le said the company hopes to pay dividends twice a month — on the 15th and again at the end of each month — for a total of 24 a year at the current rate of 11.5%.

“What do we think this will do, it should stabilize the price, dampen cyclicality, drive further liquidity and grow demand,” Le said.

A preliminary proxy filing was sent to the US Securities and Exchange Commission on Friday. The definitive proxy filing is expected on April 28, when voting opens to approve or reject the measure. Voting closes on June 8 at the annual shareholder meeting, with the new schedule expected to start mid-July if approved.

Demand plunging after dividend dates, said Le

Le said one of the main reasons for the proposed change was to address a drop in demand after investors were no longer eligible for the upcoming dividend, which cooled buying activity and slowed the pace of new share sales.

“If we were to move forward with paying STRC to semi-monthly, we would be in category 1, the only preferred in the world that pays semi-monthly dividends. We think this is unique and this is attractive,” he added.

The company went through dozens of iterations before settling on the semi-monthly schedule and had considered weekly and even daily dividend record dates. The NASDAQ stock exchange, which lists Strategy’s stock, follows industry rules requiring a minimum gap of ten days between the record date and the payment date, according to Le.

Related: Strategy’s Michael Saylor signals impending Bitcoin purchase

Strategy has the largest Bitcoin (BTC) stash among publicly traded companies with 780,897 coins, worth $58.2 billion, according to Bitbo. It’s also one of the most frequent buyers with regular weekly purchases.

The company’s stock (MSTR) jumped 11.8% on Friday to $166.52. It’s still down more than 47% over the past year, according to Google Finance.  

Strategy’s Bitcoin buying comes despite the company sitting on significant unrealized losses on its holdings. Earlier this month, Strategy reported in its first-quarter financial results that its unrealized losses on digital assets amounted to $14.46 billion.

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