Headline: Strategy shifts STRC dividends to twice monthly as preferred stock trades below par — resumes Bitcoin buys
Strategy’s shareholders have approved a move to semi-monthly dividend distributions for the company’s STRC preferred shares, a change the firm says is aimed at boosting liquidity and smoothing price swings — even as STRC continues to trade under its $100 par value.
Key points
- At its 2026 Annual Meeting, shareholders approved Proposal 5 to change STRC dividends from monthly to semi-monthly. The amendment was supported by both MSTR and STRC holders.
- Under the new cadence, dividends will be paid on the 15th and the last day of each month. The first record date is June 30, 2026, and the first payment under the new schedule is July 15.
- Strategy CEO Phong Le said the semi-monthly schedule is intended to “stabilize price, dampen cyclicality, drive liquidity, and grow demand for STRC, while giving STRC holders faster reinvestment opportunity.”
- STRC was trading around $96.65 (Yahoo Finance) at the time of reporting, below its $100 par value. The preferred stock carries an annual dividend rate of 11.50%.
Bitcoin activity and reserves
- Strategy resumed adding to its Bitcoin position, buying 1,550 BTC for about $101.3 million between June 1 and June 7, at an average price of $65,332 per coin.
- The purchases raised the company’s reported Bitcoin holdings to 845,256 BTC and coincided with a $100 million boost to its U.S. dollar reserve, taking total cash reserves to $1 billion.
- The recent accumulation followed a sale of 32 BTC near the end of May for roughly $2.5 million — the company’s first reported Bitcoin sale since December 2022.
Market reaction and analyst views
- JPMorgan described the small May sale as likely symbolic and voluntary, perhaps intended to demonstrate flexibility and reassure preferred stockholders. The bank noted, however, that the transaction highlighted questions about how future dividend obligations might be funded without tapping Bitcoin holdings and said replenished cash reserves could ease concerns about the need for further sales.
- Not all observers agree additional selling is inevitable. BTCTOP CEO Jiang Zhuoer warned that material Bitcoin sales would undermine Strategy’s identity as a long-term holder and could do more harm than holding through downturns. Jiang argued that even if Bitcoin fell to $30,000, Strategy’s leverage ratio would remain manageable (around 10%), and the firm could prioritize selling older, lower-cost coins to meet STRC needs while using new issuance proceeds to continue buying.
Why it matters
The semi-monthly dividend schedule is a tactical move to make STRC payouts more frequent and potentially more attractive to income-focused investors. At the same time, Strategy’s renewed Bitcoin purchases and strengthened cash reserves aim to balance growth in crypto exposure with liquidity and dividend commitments — a dynamic investors will be watching closely as STRC trades below par.
Read more AI-generated news on: undefined/news
