MicroStrategy Preferred Stock Logs Record Trading Volume Amid Dividend Activity

MicroStrategy's preferred stock, STRC, has set a new record for trading volume, reaching $1.53 billion on Thursday. This significant increase in trading activity was more than four times its average daily volume over the past 30 days.

The high trading volume is attributed to investors seeking to purchase shares before the ex-dividend date, which marks the cutoff point after which new buyers are no longer eligible for the upcoming dividend payment. As a result, STRC fell by nearly 1% in pre-market trading on Friday as it began trading without the right to the dividend.

The surge in trading volume also helped fund the purchase of approximately 11,707 bitcoin through MicroStrategy's at-the-market program, which allows the company to sell newly issued shares to raise capital for additional bitcoin purchases. The preferred stock currently offers an 11.5% annual dividend, paid monthly in cash.