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

Strategy, a prominent bitcoin treasury firm, 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 keep total annual obligations unchanged at $1.2 billion. Shareholders can expect to receive payouts approximately every two weeks, rather than once a month, 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 decline of $0.45 after the ex-dividend date, with a recovery period of around two weeks to reach its $100 par value. Typically, the stock price drops by the dividend amount on the ex-dividend date. When STRC trades below its $100 par value, Strategy is unable to issue shares through its at-the-market program to raise funds for bitcoin purchases. By reducing price volatility, the company aims to maintain STRC's value 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 decrease reinvestment lag and distribute the buying pressure evenly throughout the month, allowing 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 reducing volatility. STRC's historical 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, 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. Recently, STRC fell below $99 following the April 15 ex-dividend date, a drop of over $1, which is the volatility the company seeks to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR).