Michael Saylor's Strategy to Implement Bi-Monthly Dividend Payments for STRC

Strategy, a prominent bitcoin treasury company, has proposed a change to the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), shifting from a monthly to a semi-monthly payment schedule. This amendment, outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and the total annual obligations of $1.2 billion. Shareholders would receive payments approximately every two weeks, rather than once a month, with the first semi-monthly payment anticipated on July 15, following the June 8 shareholder vote. According to Strategy's presentation, STRC currently experiences an average price drop of $0.45 after the ex-dividend date, with a recovery period of around two weeks to reach its $100 par value. Typically, the stock price decreases by the amount of the dividend payment on the ex-dividend date. When STRC trades below its par value, Strategy is unable to issue shares through its at-the-market program to raise funds for bitcoin purchases. By reducing price volatility, the company aims to maintain STRC closer to its par value, enabling more consistent capital raising. The semi-monthly payments are expected to minimize this volatility and time lag. More frequent payouts would also reduce the reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a more consistent pace. The shift aligns with the typical twice-monthly U.S. payroll cycle and creates more entry and exit opportunities for shareholders, all aimed at reducing volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to 2% between March and April 2026, according to Strategy's data. If approved, STRC would become the only semi-monthly dividend-paying preferred share in the market, compared to 921 that pay quarterly and 32 that pay monthly. The company notes that 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 over $1, which is the volatility the company seeks to reduce. Disclosure: The author of this story holds shares in Strategy.