Michael Saylor's Strategy to Implement Bi-Monthly Dividends 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. According to the company's investor presentation, this amendment would maintain the annualized dividend rate of 11.5% and keep total annual obligations unchanged at $1.2 billion. Shareholders 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. Strategy's presentation highlights that STRC currently 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. Typically, the stock price drops by approximately the dividend payment amount on the ex-dividend date. When STRC trades below its $100 par value, Strategy is unable to issue shares through its at-the-market program to raise funds for bitcoin purchases. By reducing price volatility, the company aims to maintain STRC closer to par, enabling more consistent capital raising. The introduction of semi-monthly payments is expected to mitigate this volatility and time lag. Smoother bitcoin buying More frequent payouts would also decrease reinvestment lag and spread out the buying pressure more evenly throughout the month, allowing 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 and creates more opportunities for shareholders to enter and exit, all aimed at reducing volatility. STRC's historical volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026, according to Strategy's data. If approved, STRC would become the only semi-monthly dividend-paying preferred share in the market, compared to 921 that pay quarterly and 32 that pay monthly, the company stated. Nasdaq rules require a minimum of 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 over $1, which is the volatility the company seeks to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR). Read more: The key metric investors are overlooking in Michael Saylor's Strategy