Strategy adopts twice-monthly STRC payouts on $1.1B surge

Strategy is planning to switch to semi-monthly payouts for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). In its Friday announcement, the company stated that the change would reduce the dead time between dividends, allowing investors to compound their gains more quickly, stabilize stock prices, and attract more investors.

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

Momentum behind the preferred stock has accelerated sharply. STRC recorded roughly $1.1 billion in daily trading volume on April 13, a new high that highlights deepening liquidity and institutional participation. The surge represents a significant jump from its historical averages and signals that the instrument is becoming a central vehicle for capital flows into Strategy’s broader Bitcoin-focused financial model.

Market participants say the updated payout cadence could improve liquidity and trading engagement around STRC, particularly as institutional interest in crypto-linked yield products continues to grow.

STRC’s total value climbed to $6.4 billion 

Shareholders are set to vote on the STRC stock dividend update by June 8. So far, the STRC stock has become a massive hit, with total value ballooning to $6.4 billion. Volatility is now 2.1% over the last two months, significantly below the 13% recorded in the first eight months after launch. Saylor and his team say semi-monthly payments could bring it down even more.

More recently, Saylor also acknowledged that STRC has become a central source of funding for the company’s purchase strategy. Earlier in the week, the company bought 13,927 BTC for around $1 billion, pushing total holdings to 780,897 BTC, all backed by the sale of over 10 million STRC shares.

Aside from STRC, Strategy has also introduced other preferred stocks—STRF (Strife), STRE (Stream), STRK (Strike), and STRD (Stride)—to finance its Bitcoin purchase strategy, and unlike STRC, they feature fixed payout rates. 

Strategy shares surged on Friday after Middle East geopolitical tensions eased

On Friday, Strategy shares surged as peace prospects in the Middle East sent Bitcoin higher. Iran’s foreign minister, Seyed Abbas Araghchi, had assured the world that cargo ships could pass through the Strait of Hormuz without incident during the 10-day truce, which led to a rise in asset prices. 

MSTR shares advanced 11.8% as Bitcoin gained 3% to $77,400, marking its highest level since mid-January. The uptick offered some relief to Strategy, which had been under strain as unrealized losses climbed into the billions amid Bitcoin’s fall to $65,600. 

Following the gains, Saylor also posted on X an apparent AI-generated image of him shirtless on a luxury yacht, wearing orange shorts, with the words “Bitcoin and chill.” 

However, IG Group Market Analyst Alex Rudolph noted that, even with the ceasefire news, a quick rally won’t solve underlying problems such as weak crypto demand and traders’ nervous mood. For the past six months, Strategy’s stock has been on a downward slide, losing 42% of its value from a $279 peak.

Last year, traders were worried that if the company’s stock kept crashing, they’d have to dump their Bitcoin, which would tank the whole market. Moreover, Strategy’s use of STRC had heightened concerns for some, given that billions in dividends have created lasting cost burdens for the firm. 

Bitwise Senior Investment Strategist Juan Leon even commented, “Because they have such a large stockpile, they are starting to become a gorilla that can move the market. It adds more psychological pressure to the downside than to the upside, because the worry for investors becomes ever greater when they’re underwater.”  

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