Michael Saylor's Strategy Shifts to 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 amendment, as outlined in the company's investor presentation, maintains the annualized dividend rate of 11.5% and total annual obligations of $1.2 billion, but holders will now receive payouts approximately every two weeks instead of once a month. The first semi-monthly payment is anticipated on July 15, pending the June 8 shareholder vote. According to Strategy, STRC experiences an average price decline of $0.45 following the ex-dividend date, with a recovery period of around two weeks to reach its $100 par value. By adopting semi-monthly payments, the company seeks to reduce this volatility and time lag. Typically, the stock price drops by the dividend amount on the ex-dividend date. When STRC trades below its par value, Strategy is unable to issue shares through its at-the-market program to raise funds for bitcoin purchases. Smoothing the price action will enable the company to maintain STRC closer to par, facilitating more consistent capital raising. The semi-monthly payments are expected to minimize price fluctuations and reduce the time lag. More frequent payouts will also decrease reinvestment lag, spreading the buying pressure evenly throughout the month. This allows Strategy to purchase bitcoin at a more consistent pace. According to the presentation, this shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, which aims to lower volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026, as per Strategy's data. Upon approval, STRC will 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 a minimum of 10 calendar days between dividend declaration and the record date. STRC recently dropped below $99 after the April 15 ex-dividend date, a decline of over $1, which is the type of volatility the company aims to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR).