Michael Saylor's Strategy to Implement Bi-Monthly Dividends 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 adjustment, as outlined in the company's investor presentation, would maintain the annualized dividend rate of 11.5% and total annual obligations of $1.2 billion, while providing payouts approximately every two weeks instead of once a month. The first semi-monthly payment is anticipated on July 15, following the shareholder vote on June 8. Currently, STRC experiences an average price decline of $0.45 after the ex-dividend date, with recovery to its par value of $100 taking around two weeks. By adopting semi-monthly payments, Strategy seeks to reduce volatility and the time lag associated with the ex-dividend date, allowing the company to maintain STRC closer to its par value and enable more consistent capital raising for bitcoin purchases. More frequent payouts would also reduce the reinvestment lag and distribute the buying pressure more evenly throughout the month, enabling Strategy to purchase bitcoin at a steadier pace. The proposed shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, which is expected to lower volatility. According to Strategy's data, STRC's historical volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026. If approved, STRC would become the only preferred share in the market to offer semi-monthly dividends, compared to 921 that pay quarterly and 32 that pay monthly. The company's move aims to address the recent drop in STRC's value below $99 following the April 15 ex-dividend date, which is the type of volatility the company is trying to mitigate.