- Strategy has revised its STRC dividend payment protocol to twice a month.
- Shareholders have approved the start of implementing the new plan from June 30.
- The new dividend payment model aims to fix STRC’s structural trading flaws.
Bitcoin investment company Strategy has adjusted the dividend payment frequency for its STRC preferred stock. The firm had adopted a semi-monthly structure, allowing it to pay investors twice monthly.
A New Model Begins on June 30
Strategy founder Michael Saylor announced the new dividend payment structure on X, a program that will begin on June 30, following shareholder approval. In the meantime, STRC shares closed at $91.79 on Tuesday, down 3.6% amid Bitcoin’s pullback from recent gains.
Notably, shorting between payments contributed to STRC’s recent dip, pushing effective yields over 12.5%. However, the preferred stock’s supporters highlight 32 years of Bitcoin dividend coverage and recent 1,600 BTC buys as signs of strength, while critics like Parker Lewis question whether the product distracts from direct Bitcoin ownership amid competition from Strive’s SATA.
Related: Strategy Buys 1,587 BTC, Raises USD Reserve to $1.1 Billion
The New STRC Dividend Payment Schedule
With the new schedule, Strategy will now pay dividends on the 15th and the final day of each month. Meanwhile, the rate is fixed at 11.50% annualized, but split into smaller, transitional semi-monthly installments.
It is worth noting that the Strategy STRC price dip reflects the recent volatility experienced by the product, and a notable slip from its original $100 per value. The company’s CEO, Phong Le, indicated that the board might further increase the dividend rate or bolster USD reserves to push the stock back to par. That will allow the firm to resume share offerings for Bitcoin acquisitions.
Why the Change in Schedule?
The main reason behind adjusting the STRC dividend payment model is to fix structural trading flaws. According to reports, the asset suffers predictable monthly selling cycles. Therefore, the new calendar will erase deep ex-dividend price drops and flatten cyclical retail trading patterns. It will also boost liquidity by driving faster compounding opportunities and unlock funding by restoring access to at-the-market capital raises.
Related: Strategy’s Bitcoin Stock Debate Splits Crypto Community
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