Michael Saylor's Strategy Shifts to 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, while providing holders with payments approximately every two weeks instead of once a month. The first semi-monthly payment is expected on July 15, following the June 8 shareholder vote. Currently, STRC 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. By adopting semi-monthly payments, Strategy aims to reduce this volatility, enabling the company to keep STRC closer to par and facilitating more consistent capital raising for bitcoin purchases. The shift to semi-monthly payments is 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 entry and exit opportunities for shareholders and potentially lowering volatility. If approved, STRC would become the only semi-monthly dividend-paying preferred share in the market, distinct from the 921 that pay quarterly and 32 that pay monthly. Recently, STRC fell below $99 following the April 15 ex-dividend date, highlighting the volatility the company seeks to mitigate.