Michael Saylor's Strategy to Implement Bi-Monthly Dividend Payments 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, would maintain the annualized dividend rate of 11.5% and total annual obligations of $1.2 billion, with shareholders 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. According to Strategy, the current monthly dividend payment schedule results in an average $0.45 price decline for STRC after the ex-dividend date, with the stock taking around two weeks to recover to its $100 par value. By transitioning to 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 more frequent payouts are expected to reduce reinvestment lag, allowing Strategy to purchase bitcoin at a more consistent pace. This change aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit the market, which should help lower volatility. Historically, STRC's volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026. If approved, STRC would become the only semi-monthly dividend-paying preferred share in the market, distinguishing it from the 921 that pay quarterly and 32 that pay monthly. Recently, STRC's price fell below $99 following the April 15 ex-dividend date, highlighting the volatility the company seeks to mitigate.