Strategy Inc. is asking shareholders to approve a tweak to the dividend cadence for its STRC preferred stock — a move the firm says could make the security more liquid and stable as it continues to fund its bitcoin strategy.
What’s proposed
- Strategy has filed a proposal to switch STRC (Variable Rate Series A Perpetual Stretch Preferred Stock) from monthly dividend payments to a semi-monthly schedule. The change is subject to shareholder approval at the company’s annual meeting on June 8.
- If approved, the new schedule would take effect with a record date of June 30 and the first semi-monthly payment would be made on July 15.
Why Strategy wants the change
- The company argues semi-monthly payouts could reduce reinvestment lag, improve liquidity and market efficiency, and help dampen price volatility — all intended to keep STRC trading nearer its $100 par value.
- STRC currently carries a variable dividend with an annualized rate of 11.5%, and its dividend rate adjusts monthly under the existing structure. Strategy says this structure has helped limit sharp moves in the security’s price.
How STRC fits into the bigger picture
- Strategy has used preferred shares as a financing tool to support its broader bitcoin acquisition plan. These preferred instruments sit above common equity in the capital stack and have been a key source of large-scale funding.
- In addition to STRC, Strategy has issued other preferred series — STRF, STRE, STRK, and STRD — which differ from STRC by offering fixed dividend rates and alternate payout terms.
Recent market activity
- The company disclosed a day of unusually high activity for STRC earlier in the week, with trading volume hitting $1.1 billion — surpassing its previous single-day peak.
- Strategy also reported that its bitcoin holdings now total 780,897 BTC after recent purchases.
What this could mean for investors
- For traders and dividend reinvestment programs, semi-monthly payments could reduce timing frictions and potentially tighten the spread around par, which may be welcomed by market participants who trade preferred shares as a financing vehicle tied to Strategy’s bitcoin accumulation. The proposal is still pending shareholder approval, so investors should watch the June 8 meeting for the final vote.
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