Leading Bitcoin finance company Strategy (MSTR) is proposing to change the dividend payment schedule for its perpetual preferred stock Stretch (STRC) from monthly to semi-monthly payments.
The amendments outlined in Strategy’s investor presentation will keep the 11.5% annualized dividend rate and total annual obligations unchanged (currently $1.2 billion). Holders will receive payments approximately every two weeks instead of monthly, with the first semi-monthly payment expected on July 15 following the June 8 shareholder vote.
According to Strategy, STRC currently expects prices to drop an average of $0.45 after the ex-dividend date (the deadline to hold a stock to receive the dividend), taking approximately two weeks to return to par value of $100. Typically, on the ex-dividend date, the stock price falls by approximately the amount of the dividend payment.
While STRC was trading below $100 face value, Strategy was unable to issue shares through its Marketplace (ATM) program to raise funds to purchase Bitcoin. By smoothing price movements, the company aims to bring STRC closer to standard levels, allowing for more consistent funding.
Semi-monthly payments are expected to reduce this volatility and time lag.
Bitcoin purchases are more stable
More frequent payments will also reduce reinvestment lag and spread buying pressure more evenly throughout the month, allowing Strategy to purchase Bitcoin at a more stable pace and maintain consistent purchase volumes.
According to the presentation, the shift aligns with the typical twice-monthly payroll cycle in the U.S. and creates more entry and exit opportunities for shareholders, all in an effort to reduce volatility.
Data from Strategy shows that STRC’s historical volatility averaged 13% from August 2025 to March 2026, but fell to just 2% between March and April 2026.
The company said that if approved, STRC would be the only preferred company in the market that pays dividends semi-monthly, compared with 921 companies that pay dividends quarterly and 32 that pay dividends monthly. Nasdaq rules require at least 10 calendar days between dividend declaration and record date.
STRC recently fell below $99, down more than $1 since its ex-dividend date on April 15, a volatility the company aims to reduce.
Disclosure: The author owns shares of Strategy (MSTR).
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