The prominent bitcoin treasury firm, Strategy (MSTR), has put forth a proposal to alter the payment schedule for dividends on its perpetual preferred equity, Stretch (STRC), transitioning from a monthly to a semi-monthly frequency.
This proposed change, detailed in Strategy’s investor presentation, would maintain the annualized dividend rate at 11.5% and keep total annual obligations steady at $1.2 billion. Shareholders would receive their payments approximately every two weeks instead of once per month, with the inaugural semi-monthly payment anticipated on July 15 after the shareholder vote scheduled for June 8.
As indicated in Strategy’s presentation, STRC typically experiences an average price decline of $0.45 following the ex-dividend date—the cutoff point for owning shares to qualify for dividends—with recovery back to its $100 par value taking about two weeks. Generally speaking, stock prices drop by roughly the amount of the dividend on ex-dividend dates.
When STRC trades below its par value of $100, Strategy is unable to issue shares through its at-the-market (ATM) program for raising funds needed for bitcoin acquisitions. By moderating price fluctuations through this new payment structure, they aim to keep STRC closer to par value and facilitate more reliable capital raising efforts.
The introduction of semi-monthly payments is expected to mitigate volatility and reduce time delays associated with reinvestment.
Consistent Bitcoin Acquisitions
More frequent payouts are also projected to minimize reinvestment delays while distributing buying pressure evenly throughout each month; this will enable Strategy to acquire bitcoin more consistently over time.
The shift aligns with standard U.S. payroll cycles that occur twice monthly and offers shareholders additional opportunities for entry and exit—an effort aimed specifically at decreasing volatility levels.
According to data from Strategy, historical volatility rates averaged around 13% between August 2025 and March 2026 but fell significantly down to just 2% during March-April of that same year.
If approved by shareholders, STRC would stand out as the only preferred equity offering semi-monthly dividends in contrast with other options—921 companies that pay quarterly dividends and another 32 that offer monthly payouts—as noted by company representatives. Nasdaq regulations stipulate there must be a minimum gap of ten calendar days between declaring a dividend and establishing record dates.
Recently after April’s ex-dividend date on April 15th , STRC dipped below $99—a decrease exceeding $1—which exemplifies precisely what kind of volatility management strategy they are pursuing moving forward.
This author holds shares in Strategy (MSTR).
For further reading: The one metric investors might be missing regarding Michael Saylor’s Strategic approach