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. As outlined in the company's investor presentation, this amendment would maintain the annualized dividend rate of 11.5% and the total annual obligations, which currently stand at $1.2 billion. Instead of receiving payouts once a month, holders can expect to receive them approximately 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 experiences an average price decline of $0.45 after the ex-dividend date, with a recovery period to its $100 par value taking around two weeks. Typically, the stock price 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 stabilizing the price, the company aims to keep STRC closer to its par value, enabling more consistent capital raising. The introduction of semi-monthly payments is expected to mitigate this volatility and time lag. Steadier bitcoin purchasing More frequent payouts would also reduce the reinvestment lag, spreading the buying pressure more evenly throughout the month. This allows Strategy to purchase bitcoin at a more consistent pace, maintaining steady purchases. As per the presentation, this shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, ultimately reducing volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but decreased to 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, as stated by the company. Nasdaq rules require a minimum of 10 calendar days between dividend declaration and the record date. STRC recently dropped below $99 following the April 15 ex-dividend date, a decline of over $1, which is the volatility the company aims to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR). Read more: The often-overlooked metric in Michael Saylor's Strategy