Strategy Proposes Semimonthly STRC Dividend Payments

Strategy, the leading corporate holder of Bitcoin, has proposed shifting dividend payments on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, from monthly to semimonthly schedules. The change, announced Friday, aims to enhance liquidity and stabilize the stock's price without altering the annual dividend rate of 11.5 percent.

Executive Chairman Michael Saylor stated that the proposed reforms are designed to stabilize price, dampen cyclicality, drive liquidity, and grow demand. The adjustment would reduce the interval between payments to every two weeks, allowing investors to reinvest dividends more quickly and minimize price fluctuations around the stock's par value of 100. Strategy emphasized that the total annual payout obligation remains unchanged.

Shareholders will vote on the proposal at the company's annual meeting, with voting concluding on June 8. A preliminary proxy statement was filed on April 17, and if approved, the first record date under the new structure would be June 30, with payments beginning July 15.

STRC, a perpetual preferred stock, has become a key funding tool for Strategy's Bitcoin acquisition strategy. The company issued over...