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

Strategy, a prominent bitcoin treasury company, has proposed modifying the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This adjustment, as outlined in Strategy's investor presentation, would maintain the 11.5% annualized dividend rate and total annual obligations, which currently stand at $1.2 billion. As a result, shareholders would receive dividend payouts 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 the stock price taking around two weeks to recover to its $100 par value. By adopting semi-monthly payments, the company seeks to reduce this volatility and time lag. The new payment schedule is expected to enable more consistent capital raising, as it would allow STRC to trade closer to its par value, thereby facilitating the issuance of shares through Strategy's at-the-market (ATM) program to raise funds for bitcoin purchases. Furthermore, the revised payment schedule would reduce reinvestment lag and spread out the buying pressure more evenly across the month, enabling Strategy to purchase bitcoin at a more consistent pace. The shift to semi-monthly payments aligns with the typical twice-monthly U.S. payroll cycle, creating more entry and exit opportunities for shareholders and aiming to lower 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 stock in the market, distinguishing it from the 921 that pay quarterly and 32 that pay monthly. The company's move is also driven by the recent drop in STRC's price below $99 following the April 15 ex-dividend date, which is the type of volatility the company aims to mitigate.