Strategy, one of the leading treasury firms in the cryptocurrency sector, has announced a major potential shift for its high-yield preferred share series, STRC. The US-based company, well known for its significant Bitcoin investments, revealed a proposal that would allow two dividend payments per month for STRC—pending shareholder approval. Chairman Michael Saylor emphasized that this model would not alter the current dividend rate or the company’s annual payout obligations.
Switching to bi-monthly dividend payments
The planned change is set to have a direct impact on STRC shareholders. Currently, STRC boasts an attractive 11.5% annual yield, and while the annual payout will remain the same, the new system would provide payments twice monthly instead of the current schedule. Saylor explained that the expected benefits include improved price stability, reduced volatility, and enhanced liquidity for the STRC series.
“The proposed changes aim to keep the price stable, limit cyclical fluctuations, promote liquidity, and boost demand,” Michael Saylor stated.
Company data suggests demand for STRC shares has surged significantly. At the close of the most recent application period, the total value of STRC in circulation reached $6.4 billion, underlining the growing investor interest in the product.
Lower volatility and expectations for the new system
STRC shares experienced price volatility of up to 13% in the first eight months following their launch, but this figure has dropped to just 2.1% in the last two months. Saylor and his team believe that implementing bi-monthly dividend payments has the potential to push that volatility even lower.
The shareholder voting period for the proposed change will conclude on June 8. Should investors approve the proposal, July 15 is set as the date for the first bi-monthly dividend under the new schedule.
Share prices and market response
Strategy’s shares jumped by 11.8% on Friday after details of the new plan emerged. At the same time, Bitcoin’s price saw a significant 3% uptick to reach $77,400, triggering notable activity both across the broader market and within the company’s own stock.
Under Michael Saylor’s leadership, Strategy has earned a reputation for its long-term Bitcoin strategy, but in recent months, the firm has drawn attention for innovative approaches within traditional financial instruments as well.
According to CryptoAppsy, the sharp climb in MSTR shares coincided with Bitcoin’s march toward $77,400, grabbing investors’ attention thanks to rapid double-digit gains in a short period.
Strategy’s new payout plan may serve as a key case study for how more frequent and regular dividends could impact volatility in the equity markets. All attention is now focused on the outcome of the critical shareholder vote set for June 8.
