MicroStrategy is eyeing a tweak to how it pays dividends on its perpetual preferred shares, STRC — and the move is designed to steady the stock so the company can keep buying bitcoin more reliably.
What’s changing
- MicroStrategy (MSTR) has proposed moving STRC’s dividend schedule from monthly to semi-monthly (twice a month).
- The annualized dividend rate stays the same at 11.5%, and total annual cash obligations remain about $1.2 billion.
- If shareholders approve the plan at a June 8 vote, the first semi-monthly payout would land on July 15.
Why semi-monthly?
MicroStrategy’s presentation argues that the current monthly cadence creates predictable price shocks around the ex-dividend date — when a stock typically drops by roughly the dividend amount. STRC currently averages a $0.45 decline after the ex-dividend date and usually takes about two weeks to recover back toward its $100 par value. When STRC trades below par, MicroStrategy can’t issue shares through its at-the-market (ATM) program to raise cash for bitcoin purchases.
By splitting payouts into two smaller, more frequent distributions, the company expects to:
- Smooth price action around ex-dividend dates, keeping STRC closer to par;
- Reduce reinvestment lag and spread buying pressure more evenly through the month; and
- Create additional entry and exit opportunities for shareholders — potentially lowering volatility overall.
Data the company cited
- STRC’s historical volatility averaged 13% from August 2025 to March 2026, then fell to about 2% between March and April 2026.
- STRC dipped below $99 after the April 15 ex-dividend date — a fall of more than $1 — the type of volatility MicroStrategy aims to reduce.
Market context and mechanics
- If approved, STRC would become the only semi-monthly-paying preferred in the market (MicroStrategy says 921 preferreds pay quarterly and 32 pay monthly).
- Nasdaq rules require at least 10 calendar days between a dividend declaration and the record date, a logistical constraint the company noted.
- Keeping STRC near par helps MicroStrategy use its ATM program more consistently to raise funds for its bitcoin purchases, which is central to the company’s strategy.
Bottom line
This is a tactical change intended to make STRC price moves less lumpy around dividends, enabling steadier capital raises and more consistent bitcoin buys — without changing the dividend yield or total cash obligations.
Disclosure: The author of this story owns shares in MicroStrategy (MSTR).
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