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

Strategy, a prominent bitcoin treasury company, has announced plans to modify the dividend payment schedule for 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 annualized dividend rate of 11.5% and unchanged total annual obligations, currently valued at $1.2 billion. Instead of receiving monthly payouts, holders can expect to receive payments approximately 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 a recovery period to its $100 par value taking around two weeks. By implementing semi-monthly payments, the company seeks to reduce this volatility and time lag, thereby enabling more consistent capital raising. The new payment structure is expected to minimize the price drawdown and allow Strategy to purchase bitcoin at a more consistent pace. Additionally, the shift aligns with the typical twice-monthly U.S. payroll cycle, creating more opportunities for shareholders to enter and exit, which in turn, is expected to lower volatility. If approved, STRC would become the only preferred share in the market to offer semi-monthly dividend payments, distinguishing it from the 921 that pay quarterly and 32 that pay monthly. The company's data indicates that STRC's historical volatility averaged 13% from August 2025 to March 2026 but decreased to 2% between March and April 2026. The proposed change aims to reduce the volatility that occurred when STRC recently fell below $99 following the April 15 ex-dividend date.