Michael Saylor's Strategy Shifts to Bi-Monthly Dividends 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. According to the company's investor presentation, this amendment would maintain the annualized dividend rate of 11.5% and the total annual obligations of $1.2 billion, while allowing holders to receive payouts approximately every two weeks instead of once a month. The first semi-monthly payment is expected on July 15, following the June 8 shareholder vote. Currently, STRC experiences an average price decline of $0.45 after the ex-dividend date, which is the deadline to own the stock to receive the dividend, and it takes around two weeks for the stock to recover to its $100 par value. Typically, on the ex-dividend date, the stock price drops by the amount of the dividend payment. 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 keep STRC closer to its par value, enabling more consistent capital raising. The semi-monthly payments are expected to decrease this volatility and time lag. Smoother Bitcoin Purchases More frequent payouts would also decrease the reinvestment lag and spread the buying pressure more evenly across the month, enabling Strategy to purchase bitcoin at a more consistent pace. The presentation states that this shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, which is expected to reduce volatility. STRC's historical 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, compared to 921 that pay quarterly and 32 that pay monthly. STRC recently fell below $99 following the April 15 ex-dividend date, a drop of over $1, which is the type of volatility the company is trying to minimize. The author of this story owns shares in Strategy (MSTR).