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

Strategy, a prominent bitcoin treasury company, has announced plans to modify the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This change, as 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, while enabling shareholders to receive payouts approximately every two weeks. The first semi-monthly payment is expected to occur on July 15, following the June 8 shareholder vote. By adopting this new payment schedule, Strategy seeks to reduce the average $0.45 price decline that STRC experiences after the ex-dividend date, which typically takes around two weeks to recover from. The company's primary objective is to keep STRC's price closer to its $100 par value, thereby allowing for more consistent capital raising through its at-the-market (ATM) program to fund bitcoin purchases. More frequent payouts are expected to mitigate volatility and reduce the time lag associated with dividend payments. This, in turn, will enable Strategy to purchase bitcoin at a more consistent pace, spreading the buying pressure more evenly throughout the month. The shift to semi-monthly payments aligns with the typical twice-monthly U.S. payroll cycle, creating additional entry and exit opportunities for shareholders and ultimately contributing to lower volatility. Historical data shows that STRC's volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026. If approved, STRC would become the first and only semi-monthly dividend-paying preferred share in the market, distinguishing it from the 921 quarterly and 32 monthly dividend-paying preferred shares. Following the April 15 ex-dividend date, STRC's price dropped below $99, highlighting the volatility that the company aims to reduce through this new payment schedule.