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 for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This adjustment, as 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 payouts once a month, holders can expect to receive them 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 experiences an average price drop of $0.45 after the ex-dividend date, with a recovery period to its $100 par value of about two weeks. The stock price typically decreases by the dividend amount on the ex-dividend date. When STRC trades below its par value, Strategy is unable to issue shares through its at-the-market program to raise funds for bitcoin purchases. By stabilizing the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising. The semi-monthly payments are expected to mitigate this volatility and time lag. More frequent payouts would also reduce the reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a more consistent pace. According to the presentation, this shift aligns with the typical twice-monthly U.S. payroll cycle and creates more opportunities for shareholders to enter and exit, all aimed at reducing volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to 2% between March and April 2026, according to Strategy's data. If approved, STRC would become the only semi-monthly dividend-paying preferred in the market, compared to 921 that pay quarterly and 32 that pay monthly. Nasdaq rules require a minimum of 10 calendar days between dividend declaration and the record date. STRC recently fell below $99 following the April 15 ex-dividend date, a drop of over $1, which is the type of volatility the company seeks to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR).