Leading bitcoin treasury company Strategy (MSTR) has proposed changing the dividend payment schedule of its perpetual preferred stock, Stretch (STRC), from monthly to biweekly.
The amendment, outlined in Strategy’s presentation to investors, would leave the 11.5% annualized dividend rate and total annual obligations (currently $1.2 billion) unchanged. Holders would receive payments approximately every two weeks instead of once a month, with the first biweekly payment expected on July 15, following the June 8 shareholder vote.
According to Strategy’s filing, STRC currently sees an average reduction of $0.45 in price after the ex-dividend date (the deadline to own a stock to receive a dividend), with recovery to its par value of $100 taking about two weeks. Typically, on the ex-dividend date, the stock price falls by approximately the amount of the dividend payment.
When STRC trades below its face value of $100, Strategy cannot issue shares through its ATM program to raise funds for bitcoin purchases. By smoothing out the price action, the company aims to keep STRC closer to par, allowing for more consistent capital raising.
Biweekly payments are expected to reduce this volatility and time lag.
More consistent bitcoin purchasing
More frequent payments would also reduce the rollover lag and distribute buying pressure more evenly throughout the month, allowing Strategy to purchase bitcoins at a steadier pace and keep purchases consistent.
According to the filing, the change aligns with the typical bi-monthly U.S. payroll cycle and creates more entry and exit opportunities for shareholders, all with the goal of reducing 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 data.
If approved, STRC would become the only fortnightly dividend-paying preferred in the market, compared to 921 that pay quarterly and 32 that pay monthly dividends, 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, a drop of more than $1, which is the volatility the company aims to reduce.
Divulgation: The author of this story owns shares of Strategy (MSTR).
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