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), shifting 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 set at $1.2 billion. As a result, holders can expect to receive payouts approximately every two weeks, rather than 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 period of around two weeks to reach its $100 par value. The stock price often 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 (ATM) program to secure funds for bitcoin purchases. By reducing price volatility, the company aims to maintain STRC closer to par, enabling more consistent capital raising. The introduction of semi-monthly payments is expected to mitigate this volatility and time lag, allowing for steadier bitcoin purchases. More frequent payouts would reduce reinvestment lag, spreading the buying pressure more evenly throughout the month and enabling Strategy to purchase bitcoin at a consistent pace. The shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, ultimately reducing volatility. Historical data shows that 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, compared to 921 quarterly and 32 monthly payers. The Nasdaq rules require a minimum of 10 calendar days between dividend declaration and the record date. Recently, STRC fell below $99 following the April 15 ex-dividend date, a drop of over $1, highlighting the volatility the company seeks to reduce.