Strategy seeks approval for twice-monthly STRC payouts

Strategy is preparing to pay out bi-weekly dividends for its preferred STRC stock. The open vote for STRC holders will restructure dividend payments in the next two months.

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.

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