Strategy Proposes Semi-Monthly STRC Dividends, Adds $2.5B Bitcoin
Strategy acquired 34,164 BTC for $2.5 billion through STRC perpetual preferred stock funding and reported an 11.5% annual dividend yield, effectively boosting its Bitcoin holdings. The board proposed shifting STRC dividend payments from monthly to semi-monthly to accelerate liquidity, reduce reinvestment lag, and smooth Bitcoin purchase cycles.
1. Bitcoin Acquisition via STRC Funding
Strategy acquired 34,164 Bitcoin at an average price of $74,395 per coin, spending $2.5 billion funded through its STRC perpetual preferred stock instrument whenever it traded above the $100 par peg. Proceeds from STRC issuances are immediately reinvested into Bitcoin, creating a self-financing loop that has increased the company’s crypto reserves.
2. Proposal for Semi-Monthly STRC Dividends
The board has voted to shift STRC dividends from a monthly to a semi-monthly schedule, aiming to accelerate cash inflows and reduce the lag between dividend receipt and Bitcoin purchases. This change would allow the company to deploy capital more rapidly into digital assets, tightening the purchase cycle to roughly two weeks.
3. Market Implications and Liquidity Effects
Increasing the frequency of preferred dividend payments is expected to enhance STRC trading liquidity and stabilize its $100 par level, supporting arbitrage strategies that fund Bitcoin buys. This development may attract yield-seeking investors, reinforcing demand for both STRC and common stock as a proxy for Bitcoin exposure.