Strategy Plans Bi-Monthly STRC Dividend Payments Shift

CryptoFrontNews
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  • Strategy plans semi-monthly STRC dividends, keeping 11.5% yield while improving liquidity and payout frequency.

  • Proposal aims to reduce volatility and allow investors faster reinvestment through more frequent payments.

  • Change awaits shareholder vote amid criticism over structure and concerns tied to Bitcoin exposure.

Strategy has proposed shifting STRC preferred stock dividends from monthly to semi-monthly payments, according to an April 17 filing. Chairman Michael Saylor said the change aims to stabilize price and improve liquidity. The proposal keeps the annual dividend rate unchanged at 11.5% while adjusting payout frequency for shareholders.

Why Strategy is Changing Payout Timing

Strategy currently pays STRC dividends once every month. However, the company now plans to issue payments twice each month instead. This adjustment means investors would receive smaller, more frequent payouts.

Saylor explained that frequent payments reduce reinvestment delays for shareholders. As a result, investors can redeploy funds faster instead of waiting a full month. Notably, the total annual dividend obligation remains unchanged despite the timing shift.

He added that the proposal targets price stability and reduced volatility. Additionally, the company aims to improve trading liquidity and strengthen demand for STRC shares. These factors connect directly to how investors interact with dividend flows.

Timeline and Shareholder Voting Process

Strategy outlined a detailed timeline for the proposed amendment. On April 17, 2026, the company filed a preliminary proxy with the SEC. Shortly after, it expects to file a definitive proxy on April 28, opening the voting period.

Shareholders will vote on the proposal until June 8, 2026. If approved, the new dividend structure will take effect on June 30, 2026. The first semi-monthly dividend payment is scheduled for July 15, 2026.

However, the change depends entirely on shareholder approval. Until then, the current monthly dividend structure remains in place. This voting process now leads into broader concerns surrounding the stock.

Criticism Emerges as Debate Continues

Meanwhile, criticism has surfaced around STRC’s structure with Bitcoin critic Peter Schiff raising concerns. He described the stock’s design as potentially misleading.

Schiff warned that dividend cuts or price declines could lead to investor lawsuits. He pointed to the company’s use of funds to purchase Bitcoin. According to him, a decline in Bitcoin value could affect dividend sustainability.

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