Strategy opens vote for bi-weekly STRC dividends
Strategy announced STRC holders can now vote on having their mandatory dividends paid out on a bi-weekly basis. Holders of STRC as of April 17 will be able to place their vote with the broker. The voting process may be different depending on brokers, and only some international buyers may be eligible for the upcoming shareholder meeting.
The shareholder meeting is expected on June 8. If the proposal is approved, the new schedule will start from June 30 as the new record date, and July 15 as the first payout date.
“If approved and adopted, we believe this would lead to reduced reinvestment lag, enhanced liquidity, market efficiency, and increased price stability,” announced the company.
As Cryptopolitan reported earlier, Strategy has not given up on its aggressive BTC weekly purchases. The ability to raise funds through STRC and additional MSTR issuance is seen as key to the ongoing BTC purchases.
Strategy explained the proposed dividend change aims to improve the price stability of STRC around $100. Traders will then have more flexible entry and exit opportunities, potentially growing overall demand for the preferred stock.
How will STRC bi-monthly dividends affect holders?
For holders, the new payment schedule will ensure more reliable liquidity and a shorter waiting time.
For Strategy, the shift will smooth out STRC issuance. Usually, STRC buying interest increases in the middle of the month, with smaller weekly purchases for the other three weeks.
As of May 2026, STRC and similar preferred stocks like SATA still show strong user demand. With a 11.5% yield, STRC is seen as a low-risk source of income. Currently, Strategy has a 15-month cash reserve runway to cover dividends, even without a BTC bull run.
Is STRC still viable?
Strategy’s main goal is to keep STRC as close to $100 as possible. In May, the preferred stock fell to the $98 range, but recovered once again.
In the week of May 10-May 17, STRC still achieved a significant volume at the ATM price of $100. Around 65% of volume was concentrated above $100, allowing a $2.2B raise.
During the current week, Strategy has not raised any funds through STRC, despite $940M in trading volumes, as reported by Cryptoquant.
If the weekly purchases remain weak, Strategy may have to use only MSTR to acquire more BTC. MSTR traded in the $165 range, reflecting the overall subdued performance of BTC.
While STRC often leads to significant liquidity to buy BTC, it also introduces additional digital credit risks. Strategy is no longer just a spot holder, and has created a credit cycle that may cause even bigger risk than the inherent BTC volatility.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Prospects for the opening of the Hormuz Strait are overshadowed, Asian bonds under pressure: 2Y Japanese bond yield approaches 2%, 3Y Korean bond yield rises to highest level since 2022
With high oil prices, short-term bond yields in South Korea and Japan have risen.
5% US Treasury pressure weighs on global assets, while Australian government bonds open up a window for allocation? Fixed income giant Pimco calls the rate hike expectations too aggressive
Pacific Investment Management Company (Pimco) holds a constructive view on Australian bonds, believing that market expectations for rate hikes are too high. Pimco stated that the rate hike cycle in Australia has been "fully priced in," and cracks are beginning to appear in the economy, making Australian bonds look attractive, especially in the 5- to 10-year segment of the yield curve.
Only a few stocks are rising! Goldman Sachs warns: US stock market breadth hits the worst level since the 2000 internet bubble, with rare divergence in bond volatility
Flood, a Goldman Sachs partner, believes that leading AI companies are propping up the market indexes, while median stocks have fallen 16% from their highs. More unusually, Garrett, the head of derivatives trading at Goldman Sachs, warns that the bond volatility MOVE index is at an extremely high percentile, yet the VIX remains subdued. Jonathan Krinsky, a strategist at BTIG, points out that while total hedge fund leverage is rising, net leverage is falling, indicating a contradiction of "increasing exposure without increasing direction," and warns: "Something has to give."
Hyperliquid’s big test: Can institutional demand absorb $100M in whale selling?
