Strategy shifts STRC dividends to semi-monthly to steady price

At its annual meeting on Monday, shareholders approved moving payouts for STRC, Strategy’s largest perpetual preferred stock, from monthly to semi-monthly.

STRC is designed to trade near a $100 par value and pays a variable cash dividend. Strategy stated the faster payment cadence is intended to smooth price swings, boost liquidity and shorten the time holders have to reinvest.

Strategy President and CEO Phong Le described the semi-monthly schedule as ‘paying dividends on STRC twice a month is designed to stabilize price, dampen cyclicality, drive liquidity, and grow demand for STRC, while giving STRC holders a faster reinvestment opportunity.'

The company first proposed the change in April. The vote gives the board authority to set the new schedule; Strategy did not disclose an exact implementation date in its statement.

Research firm K33 reported Strategy’s bitcoin purchases rose from about 4,467 BTC in January to 22,131 BTC in March and nearly 46,872 BTC in April. K33 noted the firm has tended to buy large blocks of bitcoin ahead of dividend dates and expects that pattern to continue under the new payment cadence.

K33 cautioned that higher demand for STRC could increase Strategy’s dividend obligations over the long term. In the near term, K33 said the semi-monthly payments appear supportive for bitcoin because the company has been buying meaningful amounts of BTC ahead of payouts.

Separately, Strive, a bitcoin treasury company founded by Vivek Ramaswamy, announced its perpetual stock, trading as SATA, will begin paying a daily dividend next week. Strive CEO Matthew Cole described SATA as ‘the first listed security in the history of U.S. capital markets to pay cash dividends every single business day.'

Perpetual preferred stocks have no maturity date and typically pay variable cash dividends. Issuers can alter dividend frequency and size to influence trading dynamics, liquidity and investor demand.

The company did not provide a start date for semi-monthly payments. The shareholder vote authorizes the board to set the schedule, and market participants will watch how trading around payout dates and Strategy’s bitcoin purchase pattern respond to the new cadence.