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

Strategy, a prominent 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 11.5% annualized dividend rate and total annual obligations, currently set at $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 currently experiences an average price decline of $0.45 after the ex-dividend date, with a recovery to its $100 par value taking approximately two weeks. Typically, the stock price drops by around the amount of the dividend payment 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 smoothing the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising. The introduction of semi-monthly payments is expected to reduce volatility and time lag. More frequent payouts would also reduce reinvestment lag, spreading the buying pressure more evenly across the month and allowing Strategy to purchase bitcoin at a steadier pace. This shift aligns with the typical twice-monthly U.S. payroll cycle and creates more entry and exit opportunities for shareholders, all aimed at lowering volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to just 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 at least 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 type of volatility the company is aiming to reduce. Disclosure: The author of this story owns shares in Strategy (MSTR).