Plan to Shift from Monthly to Twice-Monthly Payments
On April 17, 2026, Strategy Inc. (formerly MicroStrategy) announced it is seeking shareholder approval to change the dividend payment schedule for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) from monthly to semi-monthly (twice per month), per The Block. If approved, the change would reduce reinvestment lag, improve liquidity, enhance market efficiency, and increase price stability for the perpetual preferred stock, per.
STRC is designed to trade near its $100 par value while paying a variable cash dividend, currently at an annualized rate of 11.5%. The dividend rate adjusts monthly to encourage trading close to par and minimize volatility, per.
STRC’s Role in Strategy’s Bitcoin Treasury Strategy
Strategy has issued a suite of preferred stocks—including STRF (Strife), STRE (Stream), STRK (Strike), STRD (Stride), and STRC (Stretch)—that rank above its common stock (MSTR). These instruments have helped the company raise billions to fund its aggressive Bitcoin acquisition strategy, per. Following recent purchases, Strategy now holds 780,897 BTC, making it one of the largest corporate Bitcoin treasuries globally, per.
Unlike Strategy’s other preferred stocks, which carry fixed dividend rates, STRC features a variable rate tied to market conditions. Earlier this week, STRC saw a record $1.1 billion trading day, nearly 50% higher than its previous high, reflecting strong investor interest, per.
Shareholder Vote and Implementation Timeline
Strategy will hold its annual meeting on June 8, 2026, where shareholders will vote on the proposal. If approved, the first record date under the new semi-monthly schedule would be June 30, 2026, with the first payment expected on July 15, 2026, per.
Investor Implications
The proposed change could make STRC more attractive to income-focused investors by providing more frequent cash flows, potentially improving liquidity and reducing reinvestment risk. However, the success of the proposal depends on shareholder approval at the June meeting.
