Strategy has filed a proxy asking STRC “Stretch” preferred holders to approve paying dividends twice per month instead of monthly. The company is pitching the cadence shift as a way to stabilize trading and deepen liquidity without changing the stated 11.5% dividend rate or annual payout obligation.

Key Takeaways

• Strategy filed a proxy to change STRC preferred dividends from monthly to semi-monthly payments.
• The stated 11.5% dividend rate and the annual dividend obligation would remain unchanged under the amendment.
• The vote closes June 8, and the first semi-monthly dividend is expected July 15 if holders approve.
• STRC outstanding notional was cited at $6.4 billion, alongside a volatility figure of 2.1% over the past two months versus 13% in the first eight months after launch.

Strategy’s STRC Proxy Seeks Semi-Monthly Dividends

Strategy (MSTR) filed a proxy solicitation seeking shareholder approval to amend the dividend payment cadence on its STRC “Stretch” series of preferred stock. The change would move distributions from a monthly schedule to semi-monthly, effectively splitting the same cashflow into two payments per month.

Voting on the amendment is scheduled to close June 8, 2026. If approved, the first semi-monthly payment is expected July 15, 2026. The filing frames the action as a targeted adjustment to how the preferred trades and clears in the market, not a rewrite of the security’s economics.

What Changes — and What Doesn’t — in the 11.5% Preferred

The proposed amendment is narrow. Strategy said the change would not affect STRC’s annual dividend obligations or its dividend rate, which is stated as 11.5%.

That matters for positioning. With the rate and annual obligation unchanged, the proxy reads as a market-structure tweak focused on cashflow timing rather than a yield reset. For traders, the practical question is whether more frequent payments tighten the security’s trading behavior, not whether the payout math improves.

The Company’s Stated Goal: Lower Volatility, More Liquidity

Executive Chairman Michael Saylor framed the cadence shift as a direct attempt to influence STRC’s price action and liquidity profile. He said the proposed changes are intended to “stabilize price, dampen cyclicality, drive liquidity, and grow demand.”

Strategy paired that pitch with specific metrics. STRC volatility was stated at 2.1% over the past two months, versus 13% in the first eight months after launch. The company’s argument is straightforward: if the instrument has already transitioned into a lower-volatility regime, splitting the dividend into semi-monthly payments could reinforce that behavior by smoothing cashflow expectations and potentially increasing the security’s appeal to income-focused allocators.