Bitcoin-focused institutional investment company Strategy has decided to reduce the dividend payment frequency for its indefinitely privileged capital instrument, Stretch, from monthly to bi-weekly. This change, which was announced in the investor presentation shared by the company, will be determined first by the shareholder vote to be held on June 8. If the proposal is approved, the first biweekly payment will be made on July 15.
STRC aims to reduce price fluctuations
by Strategy; The dividend rate offered to Stretch (STRC) holders will remain constant at 11.5 percent, and the total annual payment obligation will remain at $1.2 billion, as it is now. While the way the yield is paid out has changed, STRC investors will now see the dividend in their pocket approximately every two weeks instead of once a month.
According to the company’s presentation, the price decreases by an average of $0.45 after each ex-dividend date in STRC. The investor’s portfolio returns to its previous value at par in approximately two weeks. Generally, on the ex-dividend date, the share price falls by as much as the dividend payable.
In its presentation, Strategy stated, “The transition to semi-annual payment aims to increase the company’s continuity in raising funds, while making price movements more balanced and supporting the stock to remain close to its nominal value of $ 100.”
If STRC shares fall below $100, it prevents the company from raising funds for the purchase of bitcoin by issuing new shares on the market. By keeping prices more balanced, this process is aimed to run more regularly.
Reducing volatility and continuity of investments
By paying dividends every two weeks, it is planned to prevent sudden fluctuations in prices and recovery delays. It is stated that this regulation will reduce the delay of reinvested dividends and spread bitcoin purchases more consistently throughout the month.
In the investor presentation, it was emphasized that this change in the payment schedule is compatible with the two-week salary cycle that is common in the USA. In addition, this structure, which provides more frequent entry and exit opportunities, aims to reduce volatility for shareholders.
Market impact and current situation
According to Strategy’s data, the average fluctuation rate in STRC from August 2025 to March 2026 was 13 percent. However, this rate decreased to 2 percent in the March–April 2026 period. The presentation also included the opinion that this improvement may occur due to the change in the payment system.
If the proposal is accepted, STRC will also receive the title of being the privileged share that pays dividends every two weeks in the market. There are currently 921 different preferred shares on the market that pay quarterly dividends and 32 that pay monthly. In accordance with Nasdaq rules, there will still be a requirement of at least 10 days between the dividend announcement and the date it is entitled.
Finally, it was reported that STRC’s value fell below $99 after the dividend date on April 15. The fact that this decrease exceeded one dollar once again highlighted the company’s intention to reduce the volatility in prices.
