MicroStrategy to seek semi-monthly STRC payouts after $1.1B spike

MicroStrategy will ask shareholders to approve a change to semi-monthly dividend payments for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), with a vote scheduled for June 8. The company says the annual dividend rate will remain 11.5%.

MicroStrategy said the shorter payment cadence would reduce the gap between distributions, allow investors to compound returns more quickly and could steady trading in the preferred shares.

On X, founder Michael Saylor wrote, “These proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand.” He added the update would not alter STRC’s dividend obligations or the current 11.5% annual payout.

The company cited a surge in trading and deeper liquidity as reasons for the timing. STRC recorded roughly $1.1 billion in daily trading volume on April 13. MicroStrategy reported the preferred stock’s total market value at about $6.4 billion and said measured volatility fell to 2.1% over the last two months, compared with about 13% in the first eight months after launch.

MicroStrategy has used STRC and other preferred offerings to support its Bitcoin purchases. Earlier in the week the company bought 13,927 BTC for roughly $1 billion, bringing total holdings to 780,897 BTC. The purchases were partially funded by sales of more than 10 million STRC shares. The company also issued other preferred tranches-STRF, STRE, STRK and STRD-with fixed payout rates.

MicroStrategy’s common shares gained 11.8% on Friday after reports of easing tensions in the Middle East helped lift Bitcoin about 3% to $77,400, its highest level since mid-January. Michael Saylor posted an apparent AI-generated image of himself shirtless on a yacht with the caption “Bitcoin and chill.” The company’s stock has fallen about 42% from a $279 peak over the past six months, and the firm recorded sizable unrealized losses when Bitcoin slipped to roughly $65,600 earlier this year.

Some market participants urged caution. IG Group market analyst Alex Rudolph cautioned that “a quick rally won’t solve underlying problems such as weak crypto demand and traders’ nervous mood.” Bitwise senior investment strategist Juan Leon warned the firm’s large Bitcoin position makes it “a gorilla that can move the market” and said the size of the holding can increase psychological pressure on investors when the position is underwater.

If shareholders approve the change on June 8, STRC distributions would shift to semi-monthly payments. The company says the revised cadence could further enhance liquidity and trading engagement around STRC.