Michael Saylor's Strategy to Implement Bi-Monthly Dividends 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 11.5% annualized dividend rate and total annual obligations, currently at $1.2 billion. Instead of receiving payouts once a month, holders can expect to receive them roughly every two weeks, 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. By implementing semi-monthly payments, the company aims to reduce this volatility and keep STRC closer to its par value, enabling more consistent capital raising for bitcoin purchases. The new payment schedule is expected to reduce reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a steadier pace. This shift aligns with the typical twice-monthly U.S. payroll cycle and creates more entry and exit opportunities for shareholders, ultimately lowering volatility. If approved, STRC would become the only semi-monthly dividend-paying preferred in the market. Recently, STRC's price fell below $99 following the April 15 ex-dividend date, highlighting the volatility the company seeks to reduce.