Strategy Executive Chairman Michael Saylor said Bitcoin itself does not pay a coupon, while the company distributes U.S. dollar dividends to investors under the terms of its securities. He said the firm raises funds by issuing stock or selectively selling holdings, and uses cash reserves to cover dividends and debt interest. Strategy also said its preferred shares are not backed by Bitcoin collateral. The company’s common stock, MSTR, is positioned as a vehicle for Bitcoin exposure, while preferred stock STRC is aimed at investors seeking dollar income. STRC currently carries a 12% annualized dividend rate, with the rate reset monthly and dividends paid twice a month. The security has no maturity date and does not guarantee repayment of principal. On Sept. 25, Strategy proposed changing the dividend structure so that dividends accrue on each calendar day, while keeping the regular dividend rate and total amount unchanged. Shareholders are scheduled to vote on the proposal on Oct. 28. If approved, STRC’s first daily record date will be Nov. 1, with the first payment set for Nov. 2, according to Bitcoin.com News.
Strategy Executive Chairman Michael Saylor said Bitcoin does not pay a coupon on its own, while the company distributes U.S. dollar dividends to investors under the terms of its securities.
Saylor said Strategy raises funds by issuing stock or by selectively selling holdings, and uses cash reserves to cover dividend payments and interest on debt. He also said the company’s preferred shares are not collateralized by Bitcoin.
Within Strategy’s product lineup, common stock MSTR offers Bitcoin exposure, while preferred stock STRC is designed for investors seeking dollar-denominated income. STRC currently has a 12% annualized dividend rate, with the rate adjusted monthly and dividends paid twice each month. The security has no maturity date and does not guarantee repayment of principal.
Proposal filed on Sept. 25
On Sept. 25, Strategy proposed changing STRC’s dividend structure so that dividends accrue on each calendar day. Amounts that have been declared would generally be paid on the next business day. The regular dividend rate and total dividend amount would remain unchanged.
Shareholder vote set for Oct. 28
Shareholders are scheduled to vote on the proposal on Oct. 28. If the measure is approved, STRC’s first daily record date will be Nov. 1, and the first payment is scheduled for Nov. 2.
The report was cited from Bitcoin.com News.
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