Why Michael Saylor's Strategy decided to make STRC's dividend bi-monthly

Strategy aim to reduce volatility, enable consistent bitcoin buying, and create the only bi-monthly paying preferred shares in the market.

What to know:

• Semi-monthly payouts are expected to reduce the typical post-ex-dividend price drop, lower volatility, and help keep STRC trading closer to its $100 par value.
• More frequent distributions should reduce reinvestment lag and spread buying activity more evenly throughout the month, allowing Strategy to purchase bitcoin at a steadier pace while improving liquidity for investors.

Leading bitcoin treasury company Strategy (MSTR) has proposed shifting the dividend payment schedule on its perpetual preferred equity, Stretch (STRC), from monthly to semi-monthly.

The amendment, outlined in Strategy’s investor presentation, would keep the 11.5% annualized dividend rate and total annual obligations unchanged (currently $1.2 billion). Holders would receive payouts roughly every two weeks instead of once a month, with the first semi-monthly payment expected on July 15, following the June 8 shareholder vote.

According to Strategy's presentation, STRC currently sees an average $0.45 price drawdown after the ex-dividend date (the deadline to own a stock to receive a dividend), with recovery to its $100 par value taking around two weeks. Typically, on the ex-dividend date, the stock price drops by approximately the amount of the dividend payment.

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 smoothing the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising.

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

Steadier bitcoin buying

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

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).

Read more: The one metric investors are overlooking in Michael Saylor’s Strategy

More For You

Wrapped XRP on Solana lets XRP holders access Jupiter, Phantom, and Meteora without selling the asset, the latest step in Hex Trust's multi-chain wXRP rollout first announced in December.

What to know:

• Wrapped XRP (wXRP) has launched on Solana via custodian Hex Trust and cross-chain protocol LayerZero, making XRP usable in Solana’s DeFi ecosystem for the first time.
• Each wXRP is backed 1:1 by native XRP held in segregated custody accounts and can be redeemed at any time, allowing holders to deploy...

2026's biggest crypto exploit: Kelp DAO hit for $292 million with wrapped ether stranded across 20 chains

6 minutes ago

From smelters to servers: Alcoa to cash in on crypto’s thirst for energy

39 minutes ago

AI is increasingly eating into VC fundings and here is how crypto firms are adapting

1 hour ago

Binance and Bitget to probe RAVE’s 4,500% token surge as claims of insider-orchestrated rally grow

4 hours ago

The Lightning Network isn’t ‘helplessly broken’

4 hours ago

Zondacrypto under fire as Poland's prime minister links exchange to legislative interference

7 hours ago

Bitcoin falls back to $76,000 as Iran shuts Hormuz again

15 hours ago

How a quantum computer can be used to actually steal your bitcoin in '9 minutes'

17 hours ago

Strategy proposes semi-monthly dividends on its popular STRC preferred stock

Apr 17, 2026

Sam Altman’s World project launches major upgrade to fight deepfakes and bots

Apr 17, 2026

Ethereum co-founder Joseph Lubin warns of the dangers of AI being controlled by a few big tech firms

8 hours ago

Stripe doubles down on blockchain and stablecoins, aiming to become 'AWS for money'

17 hours ago