Strategy Inc. has announced that the dividend rate for its STRC perpetual preferred stock will remain unchanged at 11.5% for May, with a cash payment of $0.958333333 per share, according to a recent filing. The payment is scheduled for May 31, with shareholders of record as of 5 p.m. New York time on May 15 eligible to receive it.
This announcement comes as shareholders are voting on a proposal to shift STRC dividend distributions from monthly to twice-monthly. The results of the vote are expected to be revealed at the company's annual meeting on June 8. Strategy has argued that moving to a semi-monthly schedule could reduce reinvestment lag, enhance liquidity, and potentially bring the stock's price closer to its $100 par value.
Strategy's capital markets strategy remains central to its approach to bitcoin accumulation. The company recently executed a stock sale through its at-the-market (ATM) program, selling 1,451,601 shares of MSTR common stock to raise net proceeds of $255 million. These funds were used to acquire 3,273 bitcoin at an average price of $77,906 each, bringing Strategy's total bitcoin holdings to 818,334, acquired for a total of $61.81 billion.
Market reaction has been positive, with Strategy shares climbing to $177.17, a gain of $11.77 from the prior close. Bitcoin itself was trading around $78,226, up $1,971. The move underscores investor interest in the high-yield preferred stock, even as bitcoin's price volatility remains a significant factor in the company's narrative.
Executive Chairman Michael Saylor has framed the potential dividend frequency change as a market mechanism tweak rather than an increase in overall payouts. In SEC filings, Saylor stated that the goal is to make STRC "higher frequency, more liquid, less volatile," suggesting that a faster dividend cycle could help moderate price swings.
Bitwise CIO Matt Hougan recently commented that Strategy and STRC have been the "single biggest factor" driving bitcoin's latest rally. He estimated that Strategy could raise an additional $10 billion to $15 billion through STRC at current bitcoin prices, but cautioned that tougher investor scrutiny might arise if obligations approach half of the firm's bitcoin holdings.
Strategy continues to dominate among publicly traded bitcoin treasury companies, holding a commanding lead over peers like Twenty One Capital, Metaplanet, and MARA Holdings, according to BitcoinTreasuries data.
However, risks remain. The STRC documents clearly state that cash dividends are not guaranteed and that the preferred securities are not backed by the company's bitcoin holdings. A sharp decline in bitcoin's price, reduced demand for new shares, or rising yield expectations could make the financing model more challenging.
The company anticipates that the May 31 STRC dividend will be classified as a non-taxable return of capital for U.S. federal tax purposes, up to each holder's tax basis. This typically means the payout reduces an investor's cost basis rather than being subject to dividend taxes, though individual tax situations may vary.
Strategy is set to release its first-quarter earnings after U.S. markets close on May 5, followed by a video webinar at 5 p.m. Eastern. Investor focus is likely to shift from software margins to bitcoin acquisitions, share issuance capacity, and the outcome of the STRC vote.
