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), shifting from a monthly to a semi-monthly basis. This amendment, as outlined in the company's investor presentation, maintains the 11.5% annualized dividend rate and total annual obligations, currently set at $1.2 billion. As a result, holders can expect to receive 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 $0.45 price decline after the ex-dividend date, with a recovery to its $100 par value taking around two weeks. The stock price usually 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 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 this volatility and time lag. More frequent payouts would also reduce reinvestment lag, spreading the buying pressure more evenly across the month. This allows Strategy to purchase bitcoin at a steadier pace, maintaining consistent purchases. The shift aligns with the typical twice-monthly U.S. payroll cycle, creating more entry and exit opportunities for shareholders, all aimed at lowering volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to just 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. Nasdaq rules require at least 10 calendar days between dividend declaration and the record date. Recently, STRC fell below $99 following the April 15 ex-dividend date, a drop of more than $1, which is the type of volatility the company is seeking to reduce.