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

Strategy, a leading bitcoin treasury company, has announced plans to modify the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This change, as outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and the total annual obligations of $1.2 billion, while enabling shareholders to receive payments approximately every two weeks instead of once a month. The first semi-monthly payment is expected to take place on July 15, following the shareholder vote on June 8. According to Strategy's presentation, the current monthly dividend 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 adopting a semi-monthly payment schedule, the company aims to reduce this volatility and the associated time lag, allowing it to maintain a more stable stock price and facilitate consistent capital raising for bitcoin purchases. The more frequent payouts are also expected to minimize reinvestment lag and spread out the buying pressure more evenly across the month, enabling Strategy to purchase bitcoin at a more consistent pace. This shift aligns with the typical twice-monthly U.S. payroll cycle and is expected to create more entry and exit opportunities for shareholders, 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, distinguishing it from the 921 quarterly and 32 monthly dividend-paying preferred shares. The company's decision to modify its dividend payment schedule is also driven by the recent drop in STRC's stock price below $99 following the April 15 ex-dividend date, highlighting the need to reduce volatility.