Michael Saylor's Strategy Shifts to 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), from a monthly to a semi-monthly basis. This adjustment, as outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and total annual obligations, currently at $1.2 billion, while enabling holders to receive payouts approximately every two weeks instead of once a month. The first semi-monthly payment is anticipated on July 15, following the June 8 shareholder vote. According to Strategy's presentation, STRC experiences an average price decline of $0.45 after the ex-dividend date, with a recovery period to its $100 par value of around two weeks. By adopting semi-monthly payments, the company seeks to mitigate this volatility and time lag. More frequent payouts are expected to reduce reinvestment lag and distribute the buying pressure more evenly throughout the month, allowing Strategy to purchase bitcoin at a more consistent pace. The shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, with the goal of reducing volatility. Historically, STRC's volatility averaged 13% from August 2025 to March 2026 but decreased to 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. Recently, STRC's price fell below $99 following the April 15 ex-dividend date, highlighting the volatility the company aims to reduce.