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

Strategy, a prominent bitcoin treasury company, has proposed a modification to the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), changing from a monthly to a semi-monthly frequency. As outlined in the company's investor presentation, the amendment would maintain the 11.5% annualized dividend rate and overall annual obligations, which currently stand at $1.2 billion. Shareholders would receive payments approximately every two weeks, rather than 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 price decline of $0.45 after the ex-dividend date, with a recovery to its $100 par value taking around two weeks. The stock price usually drops by 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 reducing price fluctuations, the company aims to maintain STRC closer to par, enabling more consistent capital raising. Semi-monthly payments are expected to minimize volatility and time lag. More consistent bitcoin purchases The increased frequency of payouts would also reduce reinvestment lag and spread the buying pressure more evenly across the month, allowing Strategy to purchase bitcoin at a more consistent pace. The presentation notes that the shift aligns with the typical twice-monthly U.S. payroll cycle, creating more entry and exit opportunities for shareholders and aiming to reduce volatility. Historically, STRC's volatility averaged 13% from August 2025 to March 2026 but decreased 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 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 type of volatility the company aims to reduce. Disclosure: The author of this story holds shares in Strategy (MSTR). Read more: An overlooked metric in Michael Saylor's Strategy