Key Insights:
- MicroStrategy’s MSTR stock gained over 7% in the last trading session.
- The rally comes hand in hand with DeFi capital flowing into STRC.
- The STRC voting on the proposal for semi-monthly dividends is live.
MicroStrategy Inc. (NASDAQ: MSTR) shares began the month of May on an upward trajectory. The MSTR stock rallied as new funds kept pouring into its STRC-linked DeFi ecosystem. It shows increasing investor interest in on-chain credit products related to the company and its Bitcoin accumulation strategy.
MSTR Stock Update Amid Fresh Capital into STRC
The MSTR stock closed at $177.17 on May 1, gaining $11.72 or 7.08% on the day. The trading range stayed between $169.43 and $180.38 on Friday.
This MSTR stock price rally coincided with an upsurge in decentralized finance activity linked to STRC. A variety of protocols and systems have all attracted approximately $183 million of DeFi capital since inception.
One of the biggest contributors to that inflow has been Apyx. It reported a 32% week-over-week jump in reserves, surging up to $259 million. The protocol increased its exposure to STRC to about half its reserves, or approximately $130 million. This figure makes it the largest holder in the ecosystem.
Amid the MSTR stock surge, similar expansions occurred across other platforms. Saturn Credit added another $15 million in STRC.
It brings Saturn’s total support of the sUSDat stable asset to $53 million. Its total value locked has increased by 11.15% over the same period, ranging from $52.8 million to $58.9 million.
It is not only the capital inflows that have increased. Structured DeFi products that are conditioned on STRC are also becoming increasingly popular. It’s gaining traction, especially with so-called risk tranching schemes that partition exposure into various yield bands.
Royco Protocol proposed a two-level structure for apyUSD, with a senior tranche yielding 8.85% and a junior tranche yielding 29.61%. In a similar way, Strata Markets divided sUSDat into srUSDat, with returns of 7.8%, and jrUSDat, with returns as high as 25%.
STRC Voting Opens for Semi-Monthly Dividends
Such developments follow on the heels of Michael Saylor proceeding with a shareholder vote to change the dividend structure of STRC. The proposal that would require approval to change payouts from monthly to semi-monthly has been open since April 28 and will remain open through June 8.
The company says this change can reduce reinvestment delays and improve liquidity. It also aims to stabilize the pricing by minimizing large ex-dividend swings.
Only shareholders who owned STRC and MSTR stock as of April 17 can vote. Voting may be conducted through a brokerage firm or by way of proxy materials that are sent either electronically or by mail. A final decision will take place at a shareholder meeting on June 8.
If approved, the new dividend structure will take effect later in the quarter. The new system will record the first date as June 30, and the payments could start on July 15. Also, it’s important to note that MicroStrategy recently acquired Bitcoin for $255 million in late April.
