MicroStrategy is moving to transition dividend payments for its STRC preferred equity instrument from monthly to twice-monthly, according to recent shareholder notices. The structural change, which begins mid-May 2026, seeks to improve cash flow timing for investors receiving semi-monthly income streams.
Both MSTR and STRC shareholders must approve the amendment, with voting set to close in early June, r/cryptocurrency reports. The proposal follows a period of rapid growth for the instrument, which has reached $8.5 billion in assets under management (AUM) in approximately nine months.
Speaking at the Bitcoin 2026 conference, Michael Saylor described STRC as a 'digital credit instrument' designed to convert Bitcoin’s long-term capital returns into predictable income. He framed the product as a way to bridge the gap between high-volatility capital investors and those requiring steady cash flow.
"STRC turns Bitcoin capital returns into yield-focused digital credit income," Saylor stated during his 47-minute presentation.
Scaling the Bitcoin Credit Model
According to Saylor, the STRC model utilizes existing financial tools—including listed public companies and perpetual preferred equity—reconfigured to track Bitcoin’s return profile. He cited Bitcoin’s five-yield annual return of roughly 38% as the foundation that makes an 11.5% dividend rate sustainable.
Data from r/cryptocurrency indicates that STRC's daily trading volume has surpassed $380 million, with some reports placing liquidity closer to $400 million. The instrument has maintained a low volatility profile, cited as approximately 2.9% to 3% in recent reports.
Demand for the instrument has fluctuated significantly over the last several months. R/cryptocurrency reports that STRC demand stood near $500 million in January 2026, dropped to $80 million in February during a Bitcoin drawdown, then surged to $1.5 billion in March and $3.5 billion in April.
Institutional adoption of the instrument is also visible in major credit funds. Saylor noted that BlackRock and VanEck both hold STRC as their third-largest position in their respective credit funds, representing between 2% and 6% of their full credit indexes.
Despite the growth, the structure faces criticism from traditional finance figures. Peter Schiff has labeled the Strategy structure a 'scam,' arguing that rising dividend obligations could force asset liquidations if Bitcoin prices fail to maintain momentum.
Saylor countered these concerns by suggesting a 5:1 collateralization ratio could protect credit investors even if Bitcoin prices fall by 80%. He also highlighted the tax advantages of the instrument, noting that STRC dividends are classified as a return of capital, making them tax-deferred.
While retail accounts represent 80% of STRC holders—encompassing roughly 3 million households—the company is also expanding its capacity via a $21 billion shelf registration for STRC, according to the Bitcoin 2026 presentation.
