Strategy, the investment company heavily focused on Bitcoin, has initiated a shareholder vote on a proposed change to the dividend payment structure for its STRC perpetual preferred stock. The company is seeking to replace the current monthly dividend model with a semi-monthly (twice-monthly) payment system. Founder Michael Saylor urged investors to participate, stating, "You can now vote on the proposed semi-annual dividend adjustment for STRC. Make your voice heard and ensure your vote makes an impact."
If approved, STRC dividends would be distributed on the 15th and at the end of each month, increasing the number of annual payments from 12 to 24 while keeping the total annual dividend amount unchanged—each payment would be halved. Strategy argues this structure will provide a more efficient dividend flow, reduce reinvestment delays, increase liquidity, strengthen market efficiency, and reduce price volatility. The company also notes the semi-monthly model aligns with the U.S. two-week payroll cycle, better reflecting investor behavior, and could lead to more limited post-dividend price declines. According to Strategy, STRC would become one of the rare financial instruments to pay semi-monthly dividends, potentially increasing its inclusion in low-volatility indices and attracting passive investor demand.
The voting process began with a shareholder meeting on April 28, continues with an earnings call on May 5, and concludes with the final proxy document scheduled for release on June 8. Investors can vote through their brokerage firms or by contacting the company directly.
Meanwhile, Bitwise Chief Investment Officer Matt Hougan expressed optimism that Bitcoin's recent rally, fueled by Strategy's STRC issuance, could continue "for some time to come." Bitcoin is trading around $76,000, up roughly 20% from February lows. Hougan highlighted that Strategy has added $7.2 billion in Bitcoin over the past eight weeks, significantly driving the rally alongside $3.8 billion in ETF inflows since March 1. He noted that STRC, which offers an 11.5% annual yield, has provided Strategy with renewed purchasing power. "At current bitcoin prices, the company could hypothetically pay existing dividends for 42 years," said Hougan, adding, "if bitcoin rises by 20% a year, Strategy could pay the dividends forever." He also suggested rumors indicate Strategy could have raised even more capital in its last STRC offering, and with junk bonds yielding less than 7%, STRC's yield backed by a $40 billion Bitcoin cushion looks attractive. Last week, Strategy purchased 3,273 BTC for approximately $255 million, bringing its total holdings to 818,334 BTC.
