Michael Saylor said that Strategy will buy more Bitcoin and urged shareholders to vote on a proposal for semi-monthly preferred-stock dividend payouts.
This move indicates a continued aggressive acquisition strategy despite significant volatility in the cryptocurrency market and recent financial losses for the company.
Saylor, the executive chairman of Strategy (MSTR), posted on social media on June 2 that the company intended to increase its holdings, stating, "More Orange" [1]. He later said the current market environment is "a good time to add more dots" [2].
The proposed dividend structure would implement twice-monthly payouts [3]. The company intends to use the cash generated from these preferred-stock dividends to fund additional Bitcoin purchases [4].
This push for more assets comes during a period of market decline. Bitcoin prices recently slipped to $78,000 [5], and the asset has slid about 50% from its peak [6].
Strategy's own financial performance has faced headwinds. The company reported a net loss of $12.4 billion for the fourth quarter [7]. Additionally, shares of Strategy have fallen nearly 15% this year [8].
Despite these losses, Saylor continues to advocate for the accumulation of Bitcoin as a primary corporate treasury reserve. The upcoming shareholder vote on the dividend pay date will determine how the company manages its liquidity to support these buys [3].
“"More Orange."”
Strategy is attempting to create a sustainable funding loop by utilizing preferred-stock dividends to finance the acquisition of a volatile asset. By doubling down during a market dip, the company is betting that the long-term appreciation of Bitcoin will outweigh the immediate impact of quarterly losses and share price depreciation.
