Michael Saylor's Strategy to Implement 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 amendment, as outlined in the company's investor presentation, would maintain 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 roughly 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 has historically experienced an average price decline of $0.45 after the ex-dividend date, with the stock taking around two weeks to recover to its $100 par value. The company aims to mitigate this volatility by implementing semi-monthly payments, which would allow it to maintain a more stable stock price and enable consistent capital raising for bitcoin purchases. By reducing the time lag between dividend payments, Strategy also expects to minimize reinvestment lag and spread out its bitcoin buying pressure more evenly throughout the month. The proposed change aligns with the typical twice-monthly U.S. payroll cycle and is expected to create more opportunities for shareholders to enter and exit the market, ultimately reducing volatility. Historically, STRC's volatility has 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, distinguishing it from the 921 preferred shares that pay quarterly and the 32 that pay monthly. The company's move to reduce volatility is evident, as STRC recently fell below $99 following the April 15 ex-dividend date, a drop of over $1. The implementation of bi-monthly dividend payments is expected to minimize such fluctuations.