MicroStrategy moves to smooth STRC’s dividend, aiming to steady its bitcoin-funding engine
MicroStrategy (MSTR), the bitcoin-focused treasury firm led by Michael Saylor, has proposed changing the payout schedule on its perpetual preferred shares (STRC) from monthly to semi-monthly — meaning holders would be paid roughly every two weeks instead of once a month.
What the proposal would do
- The annualized dividend rate would remain 11.5% and total annual cash obligations would not change (about $1.2 billion).
- If shareholders approve the change at the June 8 vote, the first semi-monthly payment is expected on July 15.
- Nasdaq rules require at least 10 calendar days between a dividend declaration and the record date, a timing detail MicroStrategy notes in its presentation.
Why MicroStrategy says it wants the change
- Price drag after ex-dividend: MicroStrategy’s presentation finds STRC typically falls about $0.45 on average after the ex-dividend date, and takes roughly two weeks to recover to its $100 par value. That post-dividend dip is common for payouts, but it matters for STRC because:
- Capital-raising constraints: When STRC trades below $100 par, MicroStrategy can’t use its at-the-market (ATM) program to issue shares and raise cash for bitcoin purchases. Keeping STRC closer to par helps maintain that capital-raising channel.
- Smoother buying cadence: Paying dividends twice a month should spread out the drop associated with ex-dividend dates, reduce price volatility and reinvestment lag, and allow MicroStrategy to press buy on bitcoin more steadily rather than concentrating buying pressure once a month.
- Investor convenience: The company also argues the semi-monthly cadence better aligns with the common U.S. payroll cycle and creates more entry/exit opportunities for holders.
Supporting data and market context
- Volatility: MicroStrategy’s slide deck shows STRC’s historical volatility averaged about 13% from Aug 2025 to Mar 2026, then fell to roughly 2% between March and April 2026.
- Market uniqueness: If approved, STRC would be the only preferred security paying semi-monthly dividends, compared with 921 that pay quarterly and 32 that pay monthly, per the company.
- Recent example: STRC dipped below $99 after the April 15 ex-dividend date — a drop of more than $1 — illustrating the type of volatility MicroStrategy aims to curb.
Bottom line
MicroStrategy’s proposed shift to semi-monthly payouts is a tactical move to reduce STRC’s post-dividend price swings and preserve its ability to issue shares via ATM offerings — a key funding tool for the company’s ongoing bitcoin acquisitions. Shareholders will decide on the change at the June 8 vote; if approved, it could make STRC a unique preferred in the market and help MicroStrategy maintain a steadier capital-raising and bitcoin-buying cadence.
Disclosure: The author of this story owns shares in MicroStrategy (MSTR).
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