Strategy, a prominent bitcoin treasury firm, has announced a proposal to alter the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), from a monthly to a semi-monthly basis. This change, detailed in the company’s investor presentation, aims to maintain the existing 11.5% annualized dividend rate while ensuring total annual obligations remain at $1.2 billion.
If approved in the upcoming shareholder vote on June 8, the first semi-monthly payment is anticipated on July 15. Currently, holders of STRC typically receive dividends once a month, but the new schedule would allow payouts approximately every two weeks.
Strategy’s presentation indicates that STRC experiences an average price decline of $0.45 following the ex-dividend date, which is the cutoff for shareholders to qualify for the dividend. The stock usually recovers to its $100 par value within about two weeks. When STRC trades below this par value, the company faces restrictions on issuing shares through its at-the-market (ATM) program, which is crucial for raising funds for bitcoin acquisitions.
The proposed shift to semi-monthly payments is designed to mitigate price volatility and reduce the time lag associated with reinvestment. By smoothing out the price fluctuations, Strategy aims to keep STRC closer to its par value, thereby facilitating more consistent capital raising efforts.
More frequent dividend payments are expected to distribute buying pressure more evenly throughout the month, enabling Strategy to purchase bitcoin at a steadier pace. This change aligns with the typical U.S. payroll cycle, which occurs bi-monthly, and is intended to create additional entry and exit opportunities for shareholders.
Historical data from Strategy indicates that STRC’s volatility averaged 13% from August 2025 to March 2026, but this figure dropped significantly to just 2% between March and April 2026. The company aims to further reduce volatility through the proposed payment schedule.
If the proposal is accepted, STRC would become the only preferred equity in the market to offer semi-monthly dividend payments. Currently, there are 921 preferred shares that pay quarterly and 32 that pay monthly. Nasdaq regulations require a minimum of 10 calendar days between the declaration of a dividend and the record date.
Following the April 15 ex-dividend date, STRC’s price fell below $99, illustrating the volatility that the company seeks to address. The proposed change in the dividend payment structure is part of Strategy’s broader strategy to stabilize its preferred equity and enhance shareholder value.
Strategy is proposing a shift to semi-monthly dividend payments for its preferred equity, Stretch (STRC), aiming to reduce volatility and improve capital raising for bitcoin purchases. If approved, this would position STRC as the only preferred share in the market with such a payment schedule.