Strategy considers daily dividends to enhance BTC funding

Strategy is considering changing its preferred stock dividends from twice-monthly or quarterly payments to daily payouts. The company has shifted its funding focus to preferred shares, which do not dilute existing shareholders, after losing the premium on its common stock. Strategy has spent over 1000000000 dollars buying back its preferred shares to raise the price of perpetual preferred STRC toward par value but has not issued new shares since May. The daily dividend payments aim to improve liquidity and revive investor demand, although they do not mitigate credit risk associated with the preferred shares or risks from BTC price volatility. Lacy Zhang, head of research at Bitget Wallet, noted that more frequent dividend payments could reduce price fluctuations linked to ex-dividend dates, but increasing payout frequency does not necessarily enhance market liquidity.

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