Strategy Acquires $2.5B Bitcoin, Proposes Semi-Monthly Dividends
Strategy acquired 34,164 Bitcoin for $2.5 billion funded entirely through its perpetual preferred equity vehicle and is now proposing to shift preferred stock dividends from monthly to semi-monthly. The adjustment targets an 11.5% dividend yield, reduces reinvestment lag, enhances liquidity and aims to accelerate future Bitcoin purchases.
1. Bitcoin Acquisition Through STRC
On April 20, the company announced it had acquired 34,164 Bitcoin for $2.5 billion, all funded through its perpetual preferred equity vehicle. This latest purchase follows a $1 billion acquisition of roughly 14,000 coins last week, underscoring the effectiveness of the firm’s capital-raising mechanism for digital asset accumulation.
2. Dividend Frequency Proposal
Management has proposed changing preferred stock dividends from monthly to semi-monthly to reduce reinvestment lag and enhance market liquidity. The preferred shares carry an 11.5% dividend rate, and accelerated payouts aim to increase the pace and transparency of Bitcoin purchases.
3. Implications for Share Liquidity and Stability
Semi-monthly dividend payments are expected to boost trading volume in the preferred shares, smooth price fluctuations and reduce arbitrage opportunities. Investors may benefit from improved market efficiency and clearer visibility into the company’s Bitcoin buying schedule.
4. Strategy’s Preferred Stock Funding Model
The perpetual preferred equity instrument issues shares above par value to fund Bitcoin acquisitions, immediately deploying proceeds into digital assets. This mechanism has delivered effective yields around 17–18% after tax treatment, attracting yield-seeking capital and fueling continuous Bitcoin accumulation.