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

Strategy, a leading bitcoin treasury company, has proposed a change in the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This adjustment, outlined in Strategy's investor presentation, maintains the annualized dividend rate of 11.5% and total annual obligations of $1.2 billion, but holders will receive payouts 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. According to Strategy, 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, the company seeks to reduce this volatility and the associated time lag, allowing it to keep STRC closer to par and enabling more consistent capital raising for bitcoin purchases. The new payment schedule is expected to reduce reinvestment lag and spread out buying pressure more evenly, facilitating steadier bitcoin purchasing. This shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, 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, compared to 921 that pay quarterly and 32 that pay monthly. The company aims to reduce the volatility recently seen when STRC fell below $99 following the April 15 ex-dividend date. The author of this story holds shares in Strategy (MSTR).