Strategy Reveals New STRC Dividend Proposal as Peter Schiff Calls Saylor ‘Fraud’
Highlights
- Michael Saylor's Strategy has proposed semi-monthly dividends for STRC.
- The initiative aims at stabilizing STRC price and increasing liquidity.
- However, Peter Schiff has condemned this move after previously calling Saylor a "fraud."
Michael Saylor’s Strategy has announced a modification to its dividend policy on STRC preferred shares. The Bitcoin treasury company eyes providing semi-monthly dividends for STRC investors.
What Is Inside Strategy’s STRC Dividend Proposal?
The new proposal suggests that the dividends be paid twice a month rather than monthly as they are currently. In the announcement, the company stated that this change will not affect the total annual payout and yield.
In their post on X, Strategy said the move focuses to minimize fluctuations in prices, enhance liquidity, and boost investor demand. The cadence will alter but the annual dividend rate will not change. The announcement comes as STRC raised enough capital to buy billions in Bitcoin this week.
The proposal has a specified schedule. On April 17, a preliminary proxy was filed. A final proxy will be submitted on April 28 when voting will also commence. Moreover, shareholders’ voting is planned to wrap up by June 8.
Further, June 30 will serve as the first record date in the new structure. Meanwhile, the new batch of payments will begin July 15 provided that the proposal is approved.
For context, STRC consists of perpetual preferred stock which the firm uses to raise capital. The money has been channeled towards increasing its Bitcoin holdings with the latest Strategy BTC purchase on Monday, April 13. STRC aims at constant price action of its par value at $100 presently yields approximately 11.5% per year.
Peter Schiff Calls Saylor Fraud & Misleading
As CoinGape reported, Peter Schiff, a long-time Bitcoin critic, vehemently criticized the STRC structure. Earlier this week, Schiff noted that the framework of STRC was “so misleading [as] to constitute fraud.”
He added, “Get ready for the lawsuits when the dividends are cancelled and the stock craters.” Schiff has urged investors on numerous occasions to stay out of the stock and go to more conservative assets like gold and silver.
In addition, the economist splurged a fresh batch of negative comments after the STRC dividend proposal. He noted that the move, “It’s just a sign of desperation.”
Furthermore, he took a dig at Strategy’s MSTR stock. He wrote, “MSTR was initially able to fund its Bitcoin buying spree by selling shares at a premium. Now it’s forced to issue preferred shares with an 11.5% yield. Since MSTR has no earnings, this obligation can only be satisfied by selling more preferreds, discounted common, or Bitcoin.”
However, Saylor has not responded to any of Schiff’s recent comments.
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