Leading bitcoin tax firm Strategy (MSTR) has proposed moving the dividend payment schedule on its perennial favorite equity, Stretch (STRC), from monthly to semi-monthly.
The change, outlined in the Strategy’s investor presentation, will keep the annual dividend rate at 11.5% and total annual liabilities unchanged (currently $1.2 billion). Holders would receive payouts roughly every two weeks instead of once a month, with the first semi-monthly payment expected on July 15 following the June 8 shareholder vote.
According to Strategy’s presentation, STRC currently sees an average price decline of $0.45 after the ex-dividend date (the deadline for owning a stock to receive dividends), with a recovery to its $100 face value of approximately two weeks. On the ex-dividend date, the share price typically falls by approximately the amount of the dividend payment.
When STRC trades below its par value of $100, Strategy cannot issue shares through its at-the-market (ATM) program to raise funds for bitcoin purchases. By smoothing out price action, the company aims to keep STRC closer to par, enabling more consistent capital raising.
Semi-monthly payments are expected to reduce this volatility and time lag.
More stable bitcoin purchase
More frequent payouts will also reduce reinvestment lag and spread the buying pressure more evenly over the month, allowing the Strategy to buy bitcoin at a more steady pace and keep purchases consistent.
According to the presentation, the shift aligns with the typical twice-monthly U.S. earnings cycle and creates more entry and exit opportunities for shareholders, all with the goal of lowering volatility.
STRC’s historical volatility averaged 13% from August 2025 to March 2026, but fell to just 2% between March and April 2026, according to Strategy’s data.
If approved, STRC will become the only semi-monthly dividend-paying preferred in the market, compared with 921 that pay quarterly and 32 that pay monthly, the company said. Nasdaq rules require at least 10 calendar days between the dividend declaration and the record date.
STRC recently fell below $99 after the April 15 ex-dividend date, down more than $1, which is the volatility the company aims to reduce.
Disclosure: The author of this story owns shares of Strategy (MSTR).
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