Michael Saylor's Strategy Behind STRC's Shift to Bi-Monthly Dividends

Strategy, a prominent bitcoin treasury company (MSTR), has proposed a change in the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. As outlined in Strategy's investor presentation, the amendment 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 instead of 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 price decline of $0.45 after the ex-dividend date, with a recovery to its $100 par value taking around two weeks. The stock price usually 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 raise funds for bitcoin purchases. By reducing price volatility, the company aims to keep STRC closer to par, enabling more consistent capital raising. The shift to semi-monthly payments is expected to minimize this volatility and time lag. Smoother Bitcoin Purchases More frequent payouts would also decrease reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a more consistent pace. According to the presentation, the change aligns with the typical twice-monthly U.S. payroll cycle and creates more opportunities for shareholders to enter and exit, all aimed at reducing 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, the company said. Nasdaq rules require at least 10 calendar days between dividend declaration and the record date. STRC recently fell below $99 following the April 15 ex-dividend date, a drop of more than $1, which is the kind of volatility the company is trying to minimize. Disclosure: The author of this story owns shares in Strategy (MSTR). Read more: The one key metric investors are overlooking in Michael Saylor's Strategy