Dividend Schedule Change Aims to Improve Liquidity and Price Stability
Strategy Inc. has proposed a change to the dividend payment structure for its preferred stock STRC, seeking shareholder approval to shift payouts from once per month to twice per month. The company stated that moving to a semi-monthly payment model could reduce reinvestment delays while improving liquidity, market efficiency and price stability.
STRC is structured as a perpetual preferred stock designed to trade close to a $100 par value while delivering a variable cash dividend. The current dividend yield is set at an annualized rate of 11.5%, with adjustments made monthly to encourage stable pricing and minimize volatility. If approved, the new payment structure would mark a notable shift in how dividend income is distributed to investors.
Shareholder Vote Scheduled as Preferred Stock Demand Grows
The proposal will be finalized through a shareholder vote during the company’s annual meeting scheduled for June 8. If approved, the first record date under the semi-monthly system would occur on June 30, with the initial payment expected on July 15.
STRC is part of a broader lineup of preferred stocks issued by Strategy, including STRF, STRE, STRK and STRD. These instruments rank above the company’s common stock, MSTR, and have collectively helped raise billions of dollars to support ongoing Bitcoin acquisition efforts.
Unlike STRC, the company’s other preferred shares offer fixed dividend rates. Earlier this week, STRC recorded a $1.1 billion trading day, representing nearly a 50% increase from its previous record level. Following its latest purchases, Strategy now holds approximately 780,897 BTC, reinforcing its position as one of the largest corporate holders of Bitcoin.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.