STRC Vote June 8 on Semi-Monthly Dividend; Schiff Criticizes

Michael Saylor is urging STRC shareholders to approve a June 8 proposal to change the preferred stock’s dividend payments from monthly to semi-monthly while keeping the annualized yield at 11.5%. Both MSTR and STRC holders must approve the amendment for it to take effect; if passed, the first record date under the revised schedule would be June 30.

Strategy says the change would shorten reinvestment lag, improve market efficiency and support price stability around STRC’s $100 par value. The company notes roughly 80% of STRC is held by retail investors, so more frequent payouts would affect how most holders manage income. The vote on payout frequency is separate from the board’s ongoing process to set the dividend rate.

Gold advocate Peter Schiff has stepped up criticism of Strategy’s funding model, arguing the firm raises cash by selling STRC shares and other equity, uses the proceeds to buy Bitcoin, and then issues fresh equity to fund dividend payments because Bitcoin produces no cash flow. Schiff warned, “You’re running out of cash. What will you sell next to keep the wheels from falling off?” He has labeled the structure a Ponzi scheme.

Recent balance-sheet activity has added context to those concerns. Strategy used roughly $1.38 billion in cash to repurchase about $1.5 billion of 2029 convertible notes at an approximate 8% discount. That transaction reduced the company’s U.S. dollar reserve to about $871 million from roughly $2 billion before the buyback.

During Q1 2026 earnings, Saylor acknowledged the company could sell Bitcoin to cover dividends if other capital sources ran short. The firm paused Bitcoin purchases for one week while the buyback settled, though it had added 24,869 BTC earlier in the same window. Strategy’s total Bitcoin holdings now stand at 843,738 BTC.

How retail STRC holders vote on June 8 will give a direct signal of investor appetite for the current yield structure. If shareholders approve the amendment, the revised payout schedule would begin with the June 30 record date. If they reject it, dividend payments would remain on the existing monthly cadence.