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 of 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 total annual obligations, currently at $1.2 billion. Shareholders would receive payments approximately 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 the presentation, STRC typically experiences an average $0.45 price decline after the ex-dividend date, with a recovery to its $100 par value taking around two weeks. The price drop on the ex-dividend date is usually equivalent to the dividend payment amount. 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. By reducing price volatility, the company aims to keep STRC closer to its par value, enabling more consistent capital raising. The semi-monthly payments are expected to decrease this volatility and time lag. More frequent payouts would also reduce the 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 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 the company'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 type of volatility the company is trying to reduce. Disclosure: The author of this story owns shares in Strategy (MSTR).