Michael Saylor's Strategy Shifts to Bi-Monthly Dividends for STRC

Strategy, a leading bitcoin treasury company, has proposed a change to the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This adjustment, outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and the total annual obligations, currently set at $1.2 billion. Instead of receiving payouts once a month, holders would receive them approximately every two weeks, with the first semi-monthly payment anticipated on July 15, following the June 8 shareholder vote. According to Strategy's presentation, STRC has historically experienced an average price decline of $0.45 after the ex-dividend date, with recovery to its $100 par value taking around two weeks. Typically, the stock price drops by the amount of the dividend payment on the ex-dividend date. When STRC trades below its $100 par value, Strategy is unable to issue shares through its at-the-market (ATM) program to raise funds for bitcoin purchases. By smoothing the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising. The semi-monthly payments are expected to reduce this volatility and time lag. More frequent payouts would also reduce reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a steadier pace and maintain consistent purchases. The shift is expected to align with the typical twice-monthly U.S. payroll cycle and create more entry and exit opportunities for shareholders, all aimed at lowering volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to just 2% between March and April 2026, according to Strategy's data. If approved, STRC would become the only semi-monthly dividend-paying preferred in the market, compared to 921 that pay quarterly and 32 that pay monthly, the company said. Nasdaq rules require at least 10 calendar days between dividend declaration and the record date. STRC recently fell below $99 following the April 15 ex-dividend date, a drop of more than $1, which is the volatility the company is aiming to reduce. Disclosure: The author of this story owns shares in Strategy (MSTR).