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. This adjustment, outlined in the company's investor presentation, maintains the 11.5% annualized dividend rate and total annual obligations of $1.2 billion, with holders 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. Currently, STRC experiences an average price drop of $0.45 after the ex-dividend date, taking around two weeks to recover to its $100 par value. By implementing semi-monthly payments, Strategy seeks to reduce this volatility and time lag, allowing the company to keep STRC closer to par and enabling more consistent capital raising for bitcoin purchases. More frequent payouts are expected to reduce reinvestment lag, spreading the buying pressure more evenly across the month and allowing Strategy to purchase bitcoin at a steadier pace. This shift aligns with the typical twice-monthly U.S. payroll cycle, creating more entry and exit opportunities for shareholders and aiming to lower volatility. 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, a drop of more than $1, which is the volatility the company aims to reduce.