The proposed amendment keeps the annualised dividend rate at 11.5% and total yearly obligations at £1.2 billion, ensuring no change to the overall return for investors. Instead of a single monthly payout, holders will receive distributions approximately every two weeks. The first semi-monthly payment is anticipated on 15th July, pending a shareholder vote on 8th June.
Strategy aims to tackle a common issue observed with STRC: an average £0.45 price drop following the ex-dividend date, with recovery to its £100 par value often taking around two weeks. Typically, a stock's price falls by roughly the dividend amount on its ex-dividend date. When STRC trades below its £100 par value, Strategy is unable to issue new shares via its at-the-market (ATM) programme, hindering its ability to raise capital for bitcoin purchases.
By implementing semi-monthly payments, Strategy anticipates reducing this post-ex-dividend price decline and associated volatility, helping to maintain STRC closer to its par value. This stability is crucial for ensuring more consistent capital raising capabilities, directly supporting the company's bitcoin acquisition strategy.
Beyond price stabilisation, the more frequent payouts are expected to reduce reinvestment lag and distribute buying activity more evenly throughout the month. This enables Strategy to purchase bitcoin at a more consistent and predictable pace. The company also notes that this shift aligns with the typical twice-monthly US payroll cycle, offering investors more frequent entry and exit opportunities and further reducing volatility. STRC’s historical volatility, which averaged 13% from August 2025 to March 2026, saw a significant drop to just 2% between March and April 2026, according to Strategy's internal data, suggesting positive initial trends.
If approved, STRC will become a unique offering in the market. While 921 preferred shares currently pay quarterly and 32 pay monthly, STRC would be the only semi-monthly dividend-paying preferred. This innovative approach could set a new standard for dividend distribution in the preferred share market. Nasdaq rules require a minimum of 10 calendar days between dividend declaration and the record date, a regulation Strategy will adhere to with this new schedule.
