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

Strategy, a leading bitcoin treasury company, has announced plans to adjust the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This change, 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 every two weeks, rather than once a month, with the first semi-monthly payment anticipated on July 15, following the June 8 shareholder vote. Currently, STRC experiences an average price drop of $0.45 after the ex-dividend date, taking around two weeks to recover to its $100 par value. By adopting semi-monthly payments, Strategy seeks to reduce this volatility and enable more consistent capital raising. The company's presentation highlights that when STRC trades below its par value, it cannot issue shares through its at-the-market program to raise funds for bitcoin purchases. The new payment schedule is expected to smooth price action, keeping STRC closer to par and facilitating more consistent capital raising. More frequent payouts will also reduce reinvestment lag, spreading buying pressure more evenly across the month and allowing Strategy to purchase bitcoin at a steady pace. According to the presentation, this shift aligns with the typical twice-monthly U.S. payroll cycle, creating more entry and exit opportunities for shareholders and aimed at lowering volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to 2% between March and April 2026. If approved, STRC would become the only semi-monthly dividend-paying preferred in the market. The company recently experienced a drop in share price following the April 15 ex-dividend date, which is the type of volatility it aims to reduce.