Strategy Proposes Bi-Weekly Dividend to Tame STRC's Price Swings

Strategy (MSTR), the poster child for "going full bitcoin maximalist," wants to shake up how it pays out dividends on its perpetual preferred equity, Stretch (STRC), by switching from monthly to semi-monthly payments. The amendment, tucked away in Strategy's investor deck, would keep the 11.5% annualized dividend rate intact, leaving total annual obligations at a cool $1.2 billion. Investors would see payouts hit their accounts roughly every two weeks instead of once a month, with the first bi-weekly payment penciled in for July 15, assuming shareholders give the thumbs up on June 8.

The move is clearly aimed at fixing a stubborn headache: STRC currently bleeds an average $0.45 in value right after the ex-dividend date, with the recovery back to its $100 par value taking about two weeks. In plain terms, on the ex-dividend date, the stock price typically drops by roughly the dividend amount. The stock recently dipped below $99 after the April 15 ex-dividend date, shedding more than $1. When STRC trades below its $100 par value, Strategy can't tap its at-the-market program to issue shares and raise cash for bitcoin purchases. By smoothing out these price swings, the company hopes to keep STRC hovering closer to par, making capital raising a more reliable proposition.

More frequent payouts would also shrink the reinvestment gap and distribute buying pressure more evenly throughout the month, letting Strategy buy bitcoin at a steadier clip. The switch jives with the standard twice-monthly U.S. payroll cycle and opens up more entry and exit windows for shareholders. STRC's historical volatility averaged 13% from August 2025 to March 2026, but then mysteriously chilled down to just 2% between March and April 2026, per Strategy's own numbers. If approved, STRC would stand alone as the only semi-monthly dividend-paying preferred in the market—a true unicorn in a universe of 921 quarterly payers and 32 monthly ones. Nasdaq rules mandate at least 10 calendar days between dividend declaration and the record date.