Leading bitcoin treasury company Strategy (MSTR) has proposed an amendment to the payment schedule of dividends on its perpetual preferred equity, Stretch (STRC), suggesting a shift from monthly to semi-monthly payouts. This change is highlighted in the company’s recent investor presentation, which maintains the existing annualized dividend rate of 11.5% and the total annual obligations at approximately $1.2 billion. If approved, holders of STRC would receive dividends every two weeks, with the inaugural semi-monthly payment anticipated on July 15, following a shareholder vote on June 8.
The presentation notes that, as of now, STRC shares typically experience an average price drawdown of $0.45 after the ex-dividend date, indicating the necessary timing for investors to hold shares in order to receive dividends. The price recovery to its $100 par value generally takes about two weeks. Traditionally, on the ex-dividend date, the stock price declines by nearly the same amount as the dividend payment.
Moreover, the current trading dynamic complicates Strategy’s ability to generate funds for bitcoin purchases when STRC trades below its par value. This situation inhibits the company’s capacity to issue shares via its at-the-market (ATM) program. By smoothing out the price fluctuations associated with dividend payments, Strategy aims to support a more stable stock price, thus enhancing its ability to raise capital consistently.
The anticipated shift to semi-monthly payouts is positioned to mitigate volatility and create a more regular buying schedule for bitcoin, reducing the reinvestment lag typically associated with monthly payments. This adjustment is particularly relevant as it aligns with the standard payroll cycle in the U.S., offering shareholders enhanced flexibility in their investment activities.
Historical data provided by Strategy showcases that the average volatility of STRC was around 13% from August 2025 to March 2026, but this figure dropped significantly to just 2% between March and April 2026. This reduction in volatility further underscores the company’s objective to create a more stable investment environment for STRC holders.
If the proposed amendment gains approval, STRC would emerge as the only semi-monthly dividend-paying preferred stock in the entire market, distinguishing it from the 921 preferred stocks that pay quarterly and the 32 that offer monthly payments. Additionally, Nasdaq regulations stipulate a minimum of 10 calendar days between dividend declarations and record dates, which Strategy is mindful of in their planning.
Most recently, STRC shares dipped below $99 after the April 15 ex-dividend date, reflecting a drop of over $1—an indicator of the volatility that the company seeks to address through this proposed change.
