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 adjustment, outlined in the company's investor presentation, would maintain the 11.5% annualized dividend rate and keep total annual obligations unchanged, currently at $1.2 billion. As a result, holders can expect to receive payouts every two weeks instead of 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 currently experiences an average $0.45 price decline after the ex-dividend date, with recovery to its $100 par value taking approximately 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 smoothing out price fluctuations, the company aims to keep STRC closer to par, enabling more consistent capital raising. Semi-monthly payments are expected to reduce this volatility and time lag. More frequent payouts would also decrease reinvestment lag and spread out the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a more consistent pace. According to the presentation, 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. 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. 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).