Bitcoin Giant Strategy Wants to Pay Investors Dividends Every Day

Strategy, the biggest corporate holder of Bitcoin, is asking shareholders to approve daily dividend payments on four special stocks.

Strategy, the world's largest corporate owner of Bitcoin, has a bold new idea: pay some investors a dividend every single day of the year — even on weekends and holidays.

A dividend is a payment a company makes to its shareholders (people who own a piece of the company) as a reward for investing. Normally, dividends are paid every few months. Strategy wants to pay them daily instead.

This would apply to four types of the company's preferred stocks — special shares that pay a fixed, steady income and get priority over regular shares when it comes to payouts. These four are nicknamed STRF, STRC, STRK, and STRD.

Why do this? Strategy says paying daily would:

Reduce "reinvestment lag" (the wait between getting paid and putting money back to work)
Improve liquidity (how easily shares can be bought and sold)
Make prices more stable
Make its products more attractive to raise money for buying more Bitcoin

Shareholders will vote on the plan at a meeting on October 28.

A quick background on Strategy:

It used to be a software company called MicroStrategy.
In 2020, it began buying Bitcoin to protect itself from inflation (when money loses value over time).
It has since become a way for investors to bet on Bitcoin through its stock, or earn a steady income through its "digital credit" products.

The company recently slowed its aggressive Bitcoin buying because the crypto entered a bear market (a period of falling prices). It even sold some Bitcoin to strengthen its finances. Last week, though, it bought 950 bitcoins for $75.7 million — its first purchase since August.

The numbers tell a mixed story:

Strategy's stock (ticker MSTR) is down nearly 50% over the past year.
But since it started buying Bitcoin in 2020, the stock has soared nearly 1,000%.

In short: Strategy is trying a creative way to keep money flowing to investors and keep its Bitcoin strategy running smoothly. Whether shareholders approve remains to be seen.

This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/news/strategy-proposes-daily-dividends