Strategy has announced plans to change the payout frequency of its Stretch preferred stock (STRC) dividend distributions from once per month to twice monthly, keeping the annualized yield unchanged at 11.5%. The proposed update came in a regulatory proxy filed on April 17, 2026, with final approval to be decided by shareholders at the annual meeting scheduled for June 8.
Reason behind semi-monthly STRC payouts
Under the current system, STRC holders receive monthly dividends, a process that often leads to predictable price drops after the ex-dividend date. These price fluctuations typically occur as investors lock in payments and then exit, followed by new entrants seeking exposure ahead of the next distribution window.
Moving to a semi-monthly schedule would split each dividend in half, increasing frequency but reducing each individual payment. The primary goal is to reduce short-term price swings and support stability near STRC’s $100 par value. Strategy anticipates that smoothing out dividend cycles will also add to overall liquidity.
As the firm explained in public materials, the change aims to keep annual obligations identical but address recurring cycles of selling and buying around the monthly payment, tempering the effect on market prices.
Strategy outlined that the proposal targets a more stable price, less cyclicality, higher liquidity, and increased demand for $STRC, without impacting the total yearly rate.
Since launching STRC in July 2025, the stock has seen a notable drop in volatility. The 30-day price fluctuation measure has declined from roughly 13% in initial months to about 2.1% more recently. STRC was recently priced around $99.21, offering an effective yield of approximately 11.59%.
Key points for STRC shareholders
If shareholders approve the update, the first semi-monthly record date would fall on June 30, 2026, with the initial distribution under the revised cadence expected on July 15. Despite changing the payment interval, the annual dividend total will remain fixed by design.
Strategy currently holds around $6.35 billion in STRC notional value outstanding. The company channels STRC capital into ongoing Bitcoin accumulation, which has brought its BTC treasury to over 762,000 coins. This approach places Strategy among the most notable public Bitcoin-holding entities in the world.
STRC is an income-focused preferred stock instrument, first introduced as a way for investors to gain predictable cash returns while taking indirect exposure to Bitcoin’s market developments through Strategy’s allocation strategy.
Voting on the changes will begin in late April, with eligible shareholders being those listed as of April 17. Instructions and participation materials are accessible via Strategy’s website.
Strategy, formerly known as MicroStrategy, is a publicly traded business intelligence firm that transitioned into a major corporate Bitcoin holder starting in 2020. Led by Executive Chairman Michael Saylor, the company has made headlines through its unique deployment of corporate funds into sizable cryptocurrency positions and innovative financing methods such as STRC.
