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

Strategy, a leading bitcoin treasury firm, has proposed changing the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. The amendment, as outlined in the company's investor presentation, maintains the 11.5% annualized dividend rate and total annual obligations, which currently stand at $1.2 billion. Instead of receiving payouts once a month, holders can expect to receive them roughly every two weeks, with the first semi-monthly payment anticipated on July 15, following the June 8 shareholder vote. According to Strategy's presentation, STRC typically experiences an average price decline of $0.45 after the ex-dividend date, with the stock taking around two weeks to recover to its $100 par value. The price often drops by approximately the amount of the dividend payment on the ex-dividend date. 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 the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising. The shift to semi-monthly payments is 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 steadier pace and maintain consistent purchases. The change aligns with the typical twice-monthly U.S. payroll cycle and creates more entry and exit opportunities for shareholders, all aimed at lowering volatility. Historically, STRC's 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 seeks to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR).