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

Strategy, a leading 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, outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and total annual obligations of $1.2 billion, with shareholders receiving 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. Historically, STRC experiences an average price decline of $0.45 after the ex-dividend date, with recovery to its $100 par value taking around two weeks. By adopting semi-monthly payments, Strategy aims to mitigate this volatility, enabling the company to keep STRC closer to its par value and facilitate more consistent capital raising for bitcoin purchases. The shift to semi-monthly payments is expected to reduce the time lag and spread out the buying pressure more evenly across the month, allowing for steadier bitcoin buying. This change aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, which should help reduce market fluctuations. According to Strategy's data, STRC's historical volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026. If approved, STRC would become the only semi-monthly dividend-paying preferred in the market. Recently, STRC fell below $99 following the April 15 ex-dividend date, highlighting the volatility the company seeks to minimize.