Why Michael Saylor’s plan chose to make STRC’s dividend paid every two months

Strategy Proposes Change to Dividend Payment Schedule

Strategy (MSTR), a significant player in Bitcoin finance, has put forward a plan to alter the dividend payment schedule for its perpetual preferred stock, Stretch (STRC), shifting from a monthly to a semi-monthly distribution.

The suggested changes, as detailed in Strategy’s investor presentation, would keep the annual dividend rate at 11.5% unchanged, alongside its total annual debt, which stands at $1.2 billion. If approved, shareholders would start receiving dividends every two weeks, with the first semi-monthly payment set for July 15, following a shareholder vote on June 8.

The company noted that typically, STRC experiences an average price drop of $0.45 following the ex-dividend date, which is when shareholders must hold the stock to be eligible for dividends. This decline generally takes about two weeks to bounce back to its $100 par value, as stock prices usually drop by an amount equivalent to the dividend on that date.

If STRC dips below the $100 par value, Strategy would be hindered in its ability to issue shares through its at-the-market (ATM) program for Bitcoin acquisitions. The aim here is to stabilize STRC’s value, smoothing out price fluctuations for better funding possibilities.

Implementing semi-monthly payments is expected to ease this volatility and minimize the reinvestment lag, allowing for a more consistent purchasing pace of Bitcoin. This change aligns with the traditional pay cycle seen in the U.S., which could offer more exit and entry points for shareholders, ultimately aimed at lowering volatility.

Historically, STRC’s volatility averaged about 13% from August 2025 to March 2026 but reportedly decreased to just 2% in the following month.

If the proposal gets the green light, STRC would stand out as the sole preferred stock offering semi-monthly dividends, contrasting with 921 companies that adhere to a quarterly payout schedule and 32 that pay monthly. Nasdaq regulations necessitate a minimum gap of 10 calendar days between declaring dividends and the record date.

Recently, STRC dropped below $99 after the ex-dividend date on April 15, falling by over $1, which is part of the volatility that the company aims to curtail.