Strategy, an investment company focused on cryptocurrencies and Bitcoin, has launched an investor vote on a significant change to the dividend payment structure for its STRC product.
The company is proposing to replace the current monthly dividend model with a semi-monthly (twice-monthly) payment system.
In a statement, company founder Michael Saylor urged investors to participate in the vote, saying, “You can now vote on the proposed semi-annual dividend adjustment for STRC. Make your voice heard and ensure your vote makes an impact.”
According to an official statement from Strategy, if the proposal is accepted, STRC dividends will be distributed twice a month, on the 15th and at the end of the month, instead of once a month. The total annual dividend amount will remain unchanged; however, each payment will be split in half, resulting in more frequent distributions. This will increase the number of annual payments from 12 to 24.
The company states that this new structure will provide a more efficient dividend flow for investors and, in particular, reduce delays in the reinvestment process.
The main goals of the proposed change include increasing liquidity, strengthening market efficiency, and reducing price volatility. Strategy argues that more frequent dividend payments will facilitate investor inflows and outflows and support demand.
The company also states that its semi-monthly payment model aligns with the two-week payroll cycle in the US, thus better reflecting investor behavior. Furthermore, it expects post-dividend price declines to be more limited.
According to Strategy, if the proposal is accepted, STRC would become one of the rare financial instruments to pay semi-monthly dividends. Currently, the vast majority of instruments in the market use quarterly or monthly dividend models. The company also argues that this structure could increase the likelihood of inclusion in low-volatility indices and attract passive investor demand.
The process regarding the proposed changes will begin with the shareholder meeting on April 28, continue with the earnings call on May 5, and conclude with the final proxy document scheduled to be released on June 8. Investors can cast their votes through their brokerage firms or by contacting the company directly.
*This is not investment advice.
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