Strategy Proposes Semi-Monthly Dividend Shift for STRC to Optimize Bitcoin Accumulation

Strategy (MSTR) has proposed an amendment to the dividend payment schedule for its perpetual preferred equity, Stretch (STRC), shifting from monthly to semi-monthly payouts. The proposal, detailed in a recent investor presentation, maintains the 11.5% annualized dividend rate and the total annual obligation of $1.2 billion. The primary driver for the change is the mitigation of price volatility surrounding the ex-dividend date. Currently, STRC experiences an average price drawdown of $0.45 following the ex-dividend date, typically taking approximately two weeks to recover to its $100 par value. This price dip is critical because Strategy cannot utilize its at-the-market (ATM) program to raise funds for Bitcoin acquisitions when STRC trades below par. By increasing the frequency of payments, the company intends to smooth price action and reduce the time lag associated with recovery, allowing for a steadier pace of Bitcoin purchases. The shift is also designed to align with the standard U.S. twice-monthly payroll cycle, potentially increasing liquidity and providing more frequent entry and exit points for investors. If approved, STRC would become the only semi-monthly dividend-paying preferred security in the market, contrasting with 921 quarterly and 32 monthly payers. The proposal is subject to a shareholder vote on June 8. If approved, the first semi-monthly payment is scheduled for July 15.