STRC shareholders have until June 8 to decide whether to shift dividend payments from monthly to semi-monthly — a change that would keep the annualized yield at 11.5% but alter the payout schedule. The vote comes as Strategy, the company behind the STRC and MSTR securities, just burned through most of its cash reserves to repurchase convertible debt. Both STRC and MSTR holders must approve the frequency amendment for it to take effect.
The debt repurchase that drained reserves
Strategy spent $1.38 billion to buy back $1.5 billion of its 2029 convertible notes at an 8% discount. The move slashed its U.S. dollar reserves from roughly $2 billion down to $871 million. That's a lot of dry powder gone in one shot. The company paused Bitcoin purchases for a week during the settlement period.
Schiff's Ponzi claim and Saylor's backup plan
Peter Schiff, a longtime Bitcoin critic, has called Strategy's business model a Ponzi scheme. His argument: the firm burns cash buying BTC and relies on continuous equity issuance to fund dividends. Michael Saylor himself acknowledged during the Q1 2026 earnings call that if other capital sources run short, Strategy could sell Bitcoin to cover dividends. That's not a theoretical exercise — the reserve depletion makes it more plausible.
Retail holders and the BTC stash
About 80% of STRC holders are retail investors, so any change to dividend frequency hits them directly. Strategy's total Bitcoin holdings stand at 843,738 BTC after adding 24,869 BTC earlier in Q1 using STRC and equity proceeds. The company has a massive war chest of Bitcoin, but selling even a small slice to pay dividends would be a notable shift from its usual hold-forever posture.
The June 8 vote is the next concrete hurdle. If shareholders reject the frequency change, the monthly schedule stays — but the cash squeeze from the debt repurchase won't go away.
