Bitcoin treasury firm Strategy (MSTR) is proposing a shift in the dividend payout schedule for its perpetual preferred equity, Stretch (STRC), from monthly to semi-monthly. This change, detailed in Strategy’s investor presentation, would maintain an 11.5% annualized dividend rate and keep total annual obligations constant at $1.2 billion. Dividends would be issued approximately every two weeks instead of once per month, with the first bi-monthly distribution anticipated on July 15, pending approval from shareholders at a vote scheduled for June 8.
Strategy’s presentation indicates that STRC typically experiences an average $0.45 price decline following its ex-dividend date, which is the cutoff date to qualify for receiving a dividend. The stock generally returns to its $100 par value within roughly two weeks after this drop, coinciding with the dividend payout amount.
Currently, when STRC trades below its $100 par value, Strategy’s ability to issue shares through its at-the-market (ATM) program is restricted, which in turn limits its capacity to purchase bitcoin. By stabilizing price fluctuations, the company hopes to maintain STRC closer to par value, thereby facilitating more consistent capital raising efforts.
The anticipated effect of semi-monthly payments includes a reduction in volatility and time lag associated with price recoveries post-dividend payout. Moreover, these frequent payouts are expected to decrease reinvestment delays and distribute buying pressure more evenly throughout the month. This could allow Strategy to acquire bitcoin at a steadier rate while maintaining consistent purchasing activity.
The proposed adjustment aligns with the typical U.S. bi-monthly payroll cycle and offers shareholders increased opportunities for entry and exit, all aimed at diminishing volatility. According to data from Strategy, STRC’s historical volatility averaged 13% from August 2025 to March 2026 but fell significantly to just 2% between March and April 2026.
If approved, STRC will be unique as the only semi-monthly dividend-paying preferred equity in the market, standing out against the 921 quarterly payers and 32 monthly ones. Nasdaq rules stipulate a minimum of 10 calendar days between the declaration and record date of dividends.
Recently, STRC’s value dipped below $99 following its April 15 ex-dividend date, dropping by more than $1—a level of volatility that Strategy aims to mitigate with this proposed change in payout frequency.
Disclosure: The author of this story holds shares in Strategy (MSTR).