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

Strategy, a prominent bitcoin treasury firm, has proposed a modification to the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), changing from a monthly to a semi-monthly frequency. This adjustment, as outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and the total annual obligations, which currently stand at $1.2 billion. Shareholders 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 experiences an average price decline of $0.45 after the ex-dividend date, with a recovery to its $100 par value taking around two weeks. Typically, the stock price drops by approximately 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 (ATM) program to secure funds for bitcoin purchases. By stabilizing the price action, the company aims to keep STRC closer to par, thereby enabling more consistent capital raising. The introduction of semi-monthly payments is expected to mitigate this volatility and time lag. Furthermore, more frequent payouts would reduce reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a steadier pace and maintain consistent purchases. The shift is also aligned with the typical twice-monthly U.S. payroll cycle and creates more entry and exit opportunities for shareholders, all aimed at reducing volatility. Historical data shows that STRC's volatility averaged 13% from August 2025 to March 2026 but decreased to just 2% between March and April 2026. 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. 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. Disclosure: The author of this story holds shares in Strategy (MSTR).