Strategy, the Bitcoin-focused company led by Michael Saylor, has announced a 10.5% monthly dividend on its STRC shares, indicating confidence in its Bitcoin-backed financial structure. The move follows a positive third-quarter report, in which the company reported $3.9 billion in profits, a huge improvement over the $432.6 million loss it posted in the third quarter of 2024.
The 10.5% dividend marks a 0.5% increase from last month’s 10.25% payout. During an interview with Mark Moss, CEO of Satsuma Technology Plc, a UK-based decentralized crypto and AI company, in October, Saylor explained that STRC, MicroStrategy’s perpetual preferred stock, is overcollateralized by its historical Bitcoin earnings, to eliminate downside volatility.
The increase in dividend yield indicates a more aggressive push to raise funds for more BTC purchases. The strategy currently has a total holding of 640,808 BTC, with unrealized gains of $23.2 billion, according to SaylorTracker.com
Bitcoin’s October close, around $110,150, marked an 8% drop for the month, triggering a sharp sell-off in Bitcoin treasury companies. Real-time data from The Block shows that the aggregate market capitalization of publicly traded Bitcoin Treasuries fell from $142.4 billion on Oct. 1 to $123.6 billion on Oct. 31, a staggering $18.8 billion cut, representing a 13% decline, nearly double the drop in Bitcoin’s own price.
This shows greater remaining sensitivity of traditional investors to Bitcoin volatility. Cryptocurrency-exposed stocks like Marathon Digital, Galaxy Digital, and Strategy all saw double-digit declines in October.
However, the falling share price did not deter the buying frenzy. The total Bitcoin held by treasury companies increased from 800,710 BTC to 804,680 BTC, representing an increase of 3,970 BTC, worth approximately $437.8 million at the October closing price.
This countercyclical buying pattern reinforces institutional confidence in Bitcoin as a strategic treasury asset, despite frugal Fed talks and geopolitically charged crypto derivatives market turbulence in October.
Looking ahead, market leader Strategy’s aggressive intention to increase liquidity for additional Bitcoin purchases could spur new entrants to maintain demand in November.
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