Strategy Proposes Semi-Monthly Dividends for STRC Preferred Stock to Stabilize Bitcoin Buying

Strategy (MSTR), the leading Bitcoin treasury company, has announced a proposal to change the dividend payment frequency on its perpetual preferred equity, STRC, from monthly to semi-monthly. The amendment, set for a shareholder vote on June 8, would maintain the existing 11.5% annualized dividend rate and keep total annual obligations at approximately $1.2 billion, with the first bi-monthly payout expected on July 15 if approved.

The core motivation behind this shift is price stability. STRC currently experiences an average price decline of $0.45 following each ex-dividend date, with recovery to its $100 par value typically taking around two weeks. This recurring dip is a significant concern because when STRC trades below par, Strategy loses the ability to issue shares through its at-the-market (ATM) program — a key mechanism for raising capital to purchase Bitcoin. By spreading payments across two intervals per month, Strategy aims to reduce these price swings and maintain STRC closer to its par value, enabling more consistent and uninterrupted capital deployment into Bitcoin.

More frequent dividend distributions would also minimize reinvestment delays and distribute buying pressure more evenly throughout the month, allowing Strategy to acquire Bitcoin at a steadier pace. The twice-monthly schedule mirrors the standard U.S. payroll cycle, potentially broadening investor appeal while creating additional entry and exit opportunities for shareholders.

Data from Strategy shows STRC's historical volatility averaged 13% between August 2025 and March 2026, before dropping sharply to just 2% from March to April 2026. STRC briefly fell below $99 after the April 15 ex-dividend date, highlighting the volatility the company wants to address.

If shareholders approve the amendment, STRC would become the only semi-monthly dividend-paying preferred stock in the U.S. market, standing apart from 921 quarterly-paying and 32 monthly-paying preferred equities currently available.