Strategy, a leading bitcoin treasury company, is proposing a shift in dividend payments for its preferred equity, STRC, moving from monthly to semi-monthly payouts. This change, pending shareholder approval, aims to maintain the 11.5% annualized dividend rate while enabling more consistent capital raising and Bitcoin acquisitions.
The current monthly dividend schedule results in STRC trading below its $100 par value after the ex-dividend date, hindering Strategy's ability to issue shares for Bitcoin purchases. By distributing payments every two weeks, Strategy anticipates smoothing price action and keeping STRC closer to par value.
This adjustment is also expected to facilitate steadier Bitcoin buying by spreading out capital raising and reducing reinvestment lag. The move aligns with bi-monthly U.S. payroll cycles, potentially offering more trading opportunities for shareholders and lowering overall volatility.
If approved, STRC would become the only preferred stock in the market offering semi-monthly dividends, distinguishing it from the numerous quarterly and monthly payers.