#What Should You Know About Strategy's Preferred Stock?
If you have considered investing in Strategy's preferred stock as an avenue to generate yield on a proxy for Bitcoin, now is your last opportunity before the first semi-monthly dividend payment is issued. The company, formerly known as MicroStrategy, has transitioned its STRC preferred shares to a bi-monthly payout schedule, with the first payment scheduled for July 15, 2026.
The decision for this change was approved by stockholders on June 8, and to receive the initial dividend under this new arrangement, you must own the shares by the record date of June 30.
#What Does STRC Actually Pay?
STRC, officially named the Variable Rate Series A Perpetual Stretch Preferred Stock, currently offers an annualized dividend rate between 11.5% and 12%.
The forthcoming semi-monthly payment is anticipated to be approximately $0.48 per share, based on the lower end of the current rate. Following this, subsequent payments may increase to around $0.50 per share as the rate moves toward 12%. STRC shares are designed to trade close to their $100 par value, meaning that the yield is the primary appeal rather than potential capital gains.
Initially issued in July 2025 with a starting rate of 9%, the current yield illustrates Strategy's need to enhance the payout to attract investor interest.
#Why Is the Semi-Monthly Payment Schedule Significant?
The new payment structure has record dates scheduled for the 15th and the last day of each month, with expectations for prompt payouts. The motivation behind this setup is to better synchronize cash distributions with common bi-weekly payroll cycles.
More frequent payments provide enhanced cash flow management and quicker reinvestment opportunities. For those employing a dividend reinvestment strategy, receiving payments 24 times a year instead of just 12 allows for earlier compounding effects.
#How Does Bitcoin Factor Into STRC?
Investment discussions around STRC inevitably lead back to Bitcoin, as this security is fundamentally backed by Bitcoin holdings. Strategy holds one of the largest Bitcoin treasuries globally, with its entire capital structure, including STRC, supporting this accumulation strategy.
Since launching in July 2025, the company has used various capital market tools linked to its Bitcoin reserves to raise funds and facilitate further Bitcoin purchases, repeating this process in a cycle.
STRC is publicly traded on Nasdaq and can be accessed through major brokerages, making it available to retail investors. A yield of 12% on a Nasdaq-listed stock may seem appealing, although potential investors should acknowledge the inherent volatility, as the underlying asset can face significant fluctuations in value.