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Strategy proposes shift to semi-monthly dividends for STRC stock
Strategy Inc. has proposed a change to the dividend schedule of its STRC preferred stock
Summary
The proposal suggests moving payments from a monthly cycle to a semi-monthly structure, subject to shareholder approval.
The company stated that the adjustment could “lead to reduced reinvestment lag, enhanced liquidity, market efficiency, and increased price stability.” The change is still under review and has not taken effect.
Structure of STRC preferred stock
STRC, known as Variable Rate Series A Perpetual Stretch Preferred Stock, is designed to trade near a $100 par value. It currently offers a variable dividend with an annualized rate of 11.5%.
The dividend rate adjusts on a monthly basis. Strategy uses this structure to support price movement close to par while limiting sharp changes in value.
Strategy has built a portfolio of preferred shares to support its broader bitcoin acquisition plan. These instruments sit above common stock in the capital structure and have helped the firm raise large amounts of funding.
Alongside STRC, the company has issued other preferred stocks including STRF, STRE, STRK, and STRD. Unlike STRC, these carry fixed dividend rates and different payout terms.
Voting Process and Market Activity
Strategy has scheduled its annual meeting for June 8, where shareholders will vote on the proposed update. If approved, the new dividend structure will begin with a record date of June 30, and the first payment is expected on July 15.
The company also reported recent activity in STRC trading. Earlier in the week, STRC saw a trading volume of $1.1 billion in a single day, which was higher than its previous peak. The firm also disclosed that its bitcoin holdings stand at 780,897 BTC after recent purchases.