Saylor teases “larger” BTC purchases after semi-monthly dividends are paid

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Strategy co-founder Michael Saylor suggested another massive Bitcoin purchase just a week after the company revealed it had bought about $1 billion of Bitcoin in the second week of April.

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

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However, Saylor sent “Think Even ₿igger” on Sunday on X along with a chart of Strategy’s purchase history, what it has done in the past to signal another purchase announcement.

This comes just days after the Bitcoin treasury company proposed increasing the frequency of dividend payments to shareholders in hopes of stabilizing the price and growing demand.

Source: Michael Saylor

In a video presentation to shareholders common by Saylor on Friday, chief strategy officer Phong Le he 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 times a year at the current rate of 11.5%.

“What do we think this will do? It should stabilize the price, ease cyclicality, increase liquidity and increase demand,” Le said.

The initial submission of the power of attorney was sent on Friday to the U.S. Securities and Exchange Commission. The final proxy filing is expected on April 28, when voting to approve or reject the measure will begin. Voting ends June 8 at the annual shareholder meeting, and the recent schedule is expected to begin in mid-July if approved.

Demand drops after the dividend date, Le said

Le said one of the main reasons for the proposed change was to address a decline in demand after investors no longer qualified for the upcoming dividend, which cooled buying activity and slowed the pace of recent stock sales.

“If we were to continue paying STRC on a semi-monthly basis, we would be in Tier 1, the only preferred in the world that pays semi-monthly dividends. We think this is unique and attractive,” he added.

The company went through dozens of iterations before settling on a semi-monthly schedule and considering weekly or even daily dividend dates. According to Le, the NASDAQ stock exchange, where Strategy shares are listed, follows industry rules requiring a minimum gap of ten days between the date of ownership and the date of payment.

Related: Michael Saylor from Strategy signals an upcoming Bitcoin purchase

Strategy has the largest Bitcoin (BTC) stash among publicly traded companies with 780,897 coins worth $58.2 billion, According to to Bitbo. It is also one of the most common buyers who make regular weekly purchases.

Shares of the company (MSTR) rose 11.8% to $166.52 on Friday. It’s still down over 47% over the past year, According to to Google Finance.

The strategy’s Bitcoin purchases come despite the company incurring significant unrealized losses on its holdings. Earlier this month, Strategy reported in its first quarter financial results that unrealized losses on digital assets were $14.46 billion.

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