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

Strategy, a prominent bitcoin treasury firm, has proposed a change to the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), shifting from a monthly to a semi-monthly payout. This adjustment, outlined in the company's investor presentation, maintains the annualized dividend rate of 11.5% and the total annual obligations of $1.2 billion. Instead of receiving dividends once a month, holders can expect payouts approximately every two weeks, 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. By adopting semi-monthly payments, the company seeks to reduce this volatility and time lag. The new payment schedule is expected to enable more consistent capital raising, as STRC's price will be closer to its par value, allowing Strategy to issue shares through its at-the-market program to fund bitcoin purchases. Furthermore, the semi-monthly payments will reduce reinvestment lag and spread out the buying pressure more evenly throughout the month, enabling Strategy to purchase bitcoin at a more consistent pace. The shift aligns with the typical twice-monthly U.S. payroll cycle and creates more opportunities for shareholders to enter and exit, ultimately aiming to decrease 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, distinct from the 921 that pay quarterly and 32 that pay monthly. Recently, STRC's price 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.