Michael Saylor's Strategy Shifts to Bi-Monthly Dividend 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 annualized dividend rate of 11.5% and keep total annual obligations unchanged, currently at $1.2 billion. Shareholders would receive payouts approximately every two weeks instead of once a month, with the first semi-monthly payment expected 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 around two weeks. Typically, on the ex-dividend date, the stock price drops by roughly the amount of the dividend payment. When STRC trades below its $100 par value, Strategy is unable to issue shares through its at-the-market (ATM) program to raise funds for bitcoin purchases. By reducing price volatility, the company aims to keep STRC closer to par, enabling more consistent capital raising. Semi-monthly payments are expected to minimize this volatility and time lag. More frequent payouts would also reduce reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a steadier pace and maintain consistent purchases. The 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. According to the presentation, STRC's historical volatility averaged 13% from August 2025 to March 2026 but dropped to just 2% between March and April 2026. If approved, STRC would become the only semi-monthly dividend-paying preferred in the market, compared with 921 that pay quarterly and 32 that pay monthly, the company said. Nasdaq rules require at least 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 more than $1, which is the volatility the company is aiming to reduce. Disclosure: The author of this story owns shares in Strategy (MSTR). Read more: The one metric investors are overlooking in Michael Saylor’s Strategy