Strategy Inc. Proposes Semi-Monthly Payouts for STRC

Strategy Inc. filed a proposal to change dividend payments for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) from monthly to twice a month. Shareholders will vote on the measure at the company’s annual meeting on June 8.

The filing states the first record date under a semi-monthly schedule would be June 30, with the first semi-monthly payment expected on July 15 if the change is approved. STRC currently pays a variable cash dividend that is annualized at about 11.5%.

Under the current terms the dividend rate resets monthly to encourage trading near STRC’s $100 par value and limit price swings. The filing says a semi-monthly schedule could shorten the time between dividend receipt and reinvestment for holders, reducing reinvestment lag and helping to smooth trading around par.

STRC is one of several preferred securities Strategy has issued to raise capital for bitcoin purchases. Other series include STRF, STRE, STRK and STRD, which carry fixed dividend rates while STRC’s rate is adjustable. The company has used these offerings to raise billions of dollars for bitcoin acquisitions; following recent purchases it holds 780,897 BTC.

STRC is a perpetual preferred instrument with no fixed maturity and is designed to trade near par while paying periodic dividends. The variable-rate feature ties the security’s yield to market conditions. The filing notes STRC recorded roughly $1.1 billion in trading volume on a single day recently, about 50% higher than its prior single-day high.

If shareholders approve the proposal on June 8, the semi-monthly schedule would take effect with the late-June record date and the mid-July payout.