Strategy, the Bitcoin treasury firm formerly known as MicroStrategy, secured shareholder approval last week for semi-monthly dividend payments on its STRC preferred stock. The vote allows the company to issue dividends on a schedule far more frequent than the typical quarterly payout. The move comes as STRC preferred shares continue to trade below their $100 par value, a discount that some market observers see as a potential buying opportunity.
What shareholders agreed to
Under the approved plan, holders of STRC preferred stock will receive dividends every two weeks rather than the standard quarterly or even monthly schedule common among preferred shares. The company said the semi-monthly structure is designed to provide a steady income stream and make the stock more attractive to income-focused investors. The exact dividend amount per payment has not been disclosed, but it will be based on the stock's stated dividend rate and declared by the board before each payout.
Why the stock is trading below par
STRC preferred shares have traded below their $100 par value for several months. For a preferred stock, trading below par typically signals either a lack of demand or a market perception that the dividend yield doesn't compensate for the risk. The discount means new investors can buy in below the liquidation preference, but it also puts pressure on the company to make the shares more appealing. The semi-monthly dividend schedule could help narrow that discount by offering more frequent cash returns.
Scott Melker on the buying opportunity
Market expert Scott Melker, who is known for his analysis of both crypto and equity markets, said the current price represents a favorable entry point. “Now is a good time to buy the stock,” Melker told GFdaily. He noted the combination of the discount to par value and the newly approved dividend stream creates a setup that gives investors exposure to Strategy’s Bitcoin treasury strategy without directly holding the cryptocurrency.
When dividends start
The company expects to announce the first semi-monthly dividend payment date in the coming weeks. Shareholders of record as of a yet-to-be-determined date will be eligible for the initial payout. For Strategy, the move is part of a broader effort to optimize its capital structure and provide tangible returns to preferred holders even as it continues to accumulate Bitcoin on its balance sheet. Investors are awaiting the specific record date and the first dividend amount, which will clarify the yield on the discounted shares.
