Strategy (MSTR) Proposes Semi-Monthly Dividends on STRC Preferred Stock to Boost Stability

Bitcoin treasury company Strategy, formerly known as MicroStrategy and traded under the ticker MSTR, has filed a proxy proposal that could reshape how dividends are distributed on its STRC "Stretch" preferred stock series. If approved by shareholders, the amendment would shift dividend payments from a monthly to a semi-monthly schedule, a structural change Executive Chairman Michael Saylor believes could meaningfully benefit investors.

Saylor was clear that the proposal carries no changes to the annual dividend rate, which remains fixed at 11.5%, nor does it alter the total dividend obligations tied to STRC shares. The intent, according to Saylor, is purely strategic — designed to stabilize the stock's price, reduce cyclical price swings, improve market liquidity, and attract a broader base of investors seeking consistent income.

The STRC preferred stock has already demonstrated strong market traction since its launch. Outstanding notional value has climbed to approximately $6.4 billion, reflecting significant institutional and retail appetite for high-yield bitcoin-adjacent instruments. Volatility has also improved considerably, falling to just 2.1% over the past two months compared to 13% during the eight months following the series' initial debut. Despite this progress, Strategy's leadership believes more frequent dividend disbursements could push volatility even lower.

Shareholders will have until June 8 to cast their votes on the proposed amendment. Should it pass, the first semi-monthly dividend payment under the revised structure is anticipated on July 15.

The announcement contributed to positive market sentiment around MSTR shares, which surged 11.8% on Friday. The rally coincided with a broader bitcoin price recovery, with BTC climbing roughly 3% to approximately $77,400. As Strategy continues to expand its bitcoin holdings and refine its financial instruments, moves like this underscore the company's commitment to creating investor-friendly, yield-generating equity products in the crypto treasury space.