Strategy (formerly MicroStrategy) has proposed shifting the dividend schedule of its perpetual preferred equity, STRC, from monthly to semi-monthly. The amendment, detailed in its investor presentation, would keep the 11.5% annualized dividend rate and the total annual obligation of $1.2 billion unchanged. Holders would receive payouts roughly every two weeks instead of once a month, with the first semi-monthly payment expected on July 15, following a shareholder vote on June 8.
Why Ex-Dividend Volatility Matters
According to Strategy's presentation, STRC currently sees an average $0.45 price drawdown after the ex-dividend date, with recovery to its $100 par value taking about two weeks. When STRC trades below par, the company cannot issue shares through its at-the-market (ATM) program to raise funds for Bitcoin purchases. By reducing the price gap and recovery lag, more frequent payments aim to keep the stock closer to par, enabling a more reliable capital raising channel.
Data shows STRC's historical volatility averaged 13% from August 2025 to March 2026, but dropped to just 2% between March and April 2026. The proposal targets sustaining that low-volatility environment.
Aligning with Payroll Cycles
More frequent payouts also reduce reinvestment lag and spread buying pressure evenly across the month. The presentation notes that the shift aligns with the typical twice-monthly U.S. payroll cycle, allowing Strategy to purchase Bitcoin at a steadier pace. This avoids a lump-sum reinvestment effect that could cause price swings.
If approved, STRC would become the only semi-monthly dividend-paying preferred in the market, compared with 921 quarterly and 32 monthly payers. Nasdaq rules require at least 10 calendar days between the dividend declaration and record date, which the new schedule meets. STRC recently fell below $99 after the April 15 ex-dividend date — a drop of more than $1 that the company hopes to prevent in the future.