Strategy, the largest corporate Bitcoin holder chaired by Michael Saylor, has shifted its flagship preferred stock STRC to semi-monthly dividend payments, with the first record date set for June 30, 2026. The initial semi-monthly period carries an 11.50% annualized dividend rate, equating to $0.48 per share, and shareholders recorded at that date will receive payment on July 15. The announcement comes as the $10.5 billion variable-rate perpetual preferred stock sank to its lowest level of the year, closing at $91.79 on Tuesday — well below the $100 par level Strategy aims to maintain.
STRC’s decline has turned the product into a pressure test for Bitcoin-linked income instruments. The stock, which grew from $2.8 billion to $10.5 billion through at-the-market issuance, is now trading at a yield of about 12.6% given its $11.50 annual dividend. Analysts say Strategy may need to raise the dividend to around $12.60 to pull the price back toward par. Kraken chief economist Thomas Perfumo noted that roughly 86% of the variation in STRC’s yield spread can be explained by Bitcoin price moves, indicating investors view the stock more as a credit product tied to Bitcoin’s risk premium than a stable preferred.
Adding pressure, rival product SATA from Strive is trading near par while offering a higher annualized payout of about 13% with daily dividends, making STRC’s discount more visible. Parker White of DeFi Development Corp. highlighted that SATA’s structure imposes a much higher cost to short — estimated at 17.6% annualized versus about 60 basis points for STRC — which has helped SATA hold its value. White suggested Strategy could stabilize STRC by raising the dividend to 12%, moving to daily payments, increasing the call price to $110, and boosting the cash buffer to $2.5 billion, though each step carries trade-offs.
The dual developments — the dividend frequency upgrade and the price slump — underscore the delicate balance Strategy must strike to fund its Bitcoin acquisitions while satisfying yield-hungry investors in a volatile market.
