Michael Saylor has a pitch for anyone who thinks holding Bitcoin and paying dividends are mutually exclusive: sell a tiny sliver of your stack, use the proceeds to pay investors, then buy back way more than you sold.
In a television appearance on June 5, Strategy Inc.’s executive chairman walked through the mechanics of how the company’s preferred stock instrument, called STRC (“Stretch”), lets Strategy fund regular dividend payments while actually growing its Bitcoin position.
The 1.4% solution
STRC is a perpetual preferred stock that pays an 11.5% annualized dividend, distributed monthly. It represents just 1.4% of Strategy’s total assets.
Between May 26 and May 31, Strategy sold 32 BTC for approximately $2.5 million to finance the STRC distributions. That sale marked the company’s first Bitcoin disposal since 2022.
