Michael Saylor's Strategy Shifts to Bi-Monthly Dividend Payments for STRC

Strategy, a leading bitcoin treasury company, has proposed a change to the dividend payment schedule of its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This adjustment, outlined in the company's investor presentation, maintains 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 $0.45 price decline after the ex-dividend date, with a recovery to its $100 par value taking around two weeks. By adopting semi-monthly payments, the company seeks to mitigate this volatility and reduce the time lag. The new payment schedule is expected to facilitate more consistent capital raising, as it will enable Strategy to keep STRC closer to its par value. More frequent payouts will also reduce reinvestment lag, spreading the buying pressure more evenly across the month and allowing Strategy to purchase bitcoin at a more consistent pace. The shift aligns with the typical twice-monthly U.S. payroll cycle, creating additional entry and exit opportunities for shareholders and aiming to lower volatility. Historically, STRC's 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 share in the market, compared to 921 that pay quarterly and 32 that pay monthly. The company notes that Nasdaq rules require at least 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, which is the type of volatility the company aims to reduce.