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), from a monthly to a semi-monthly basis. This adjustment, as outlined in the company's investor presentation, would maintain the 11.5% annualized dividend rate and total annual obligations, which currently stand at $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 typically 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. The stock price often 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 program to raise funds for bitcoin purchases. By smoothing out the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising. The introduction of semi-monthly payments is expected to reduce volatility and the associated time lag. More frequent payouts would also decrease the reinvestment lag, spreading the buying pressure more evenly throughout the month and 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 lowering volatility. Historically, STRC's volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026, according to the company'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. Following the April 15 ex-dividend date, STRC recently fell below $99, a drop of over $1, which is the type of volatility the company aims to reduce.