Strategy, led by Michael Saylor, has opted to transition STRC’s dividend payments to a bi-monthly schedule.

The primary goal is to minimize market volatility, facilitate regular Bitcoin acquisitions, and establish STRC as the sole bi-monthly paying preferred stock available.

Key Points:

• Bi-monthly distributions are anticipated to mitigate the usual post-ex-dividend price decline, decrease volatility, and maintain STRC’s trading price nearer to its $100 par value.
• Increased distribution frequency will lessen reinvestment delays and distribute buying activity more uniformly throughout the month, enabling Strategy to acquire Bitcoin at a consistent rate while enhancing investor liquidity.

Leading bitcoin treasury firm Strategy (MSTR) has suggested altering the dividend payment timetable for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly schedule.

The proposed change, detailed in Strategy’s investor materials, will maintain the 11.5% annualized dividend rate and total annual commitments (currently $1.2 billion). Shareholders will receive payments approximately every two weeks instead of monthly, with the initial semi-monthly distribution expected on July 15, following the June 8 shareholder approval.

Strategy’s presentation indicates that STRC currently experiences an average $0.45 price drop after the ex-dividend date (the cutoff for owning a stock to receive a dividend), with recovery to its $100 par value taking about two weeks. Typically, the stock price decreases by roughly the dividend amount on the ex-dividend date.

When STRC trades below its $100 par value, Strategy cannot issue shares through its at-the-market (ATM) program to raise funds for Bitcoin purchases. By stabilizing price fluctuations, the company aims to keep STRC closer to par, facilitating more consistent capital raising.

Semi-monthly payments are expected to reduce this volatility and time lag.

Consistent Bitcoin Acquisitions

More frequent payouts would also reduce reinvestment lag and spread out buying pressure more evenly across the month, allowing Strategy to purchase Bitcoin at a steadier pace and maintain consistent acquisitions.

According to the presentation, 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 Strategy’s data.

If approved, STRC would become the only semi-monthly dividend-paying preferred in the market, compared with 921 that pay quarterly and 32 that pay monthly, the company said. 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 volatility the company is aiming to reduce.

Disclosure: The author of this story owns shares in Strategy (MSTR).