Bitcoin-focused institutional investment firm Strategy is considering a major change to its payout schedule for Stretch (STRC), a perpetual preferred equity instrument. According to the company’s latest investor presentation, Strategy aims to switch from monthly dividends to payouts every two weeks, subject to a shareholder vote scheduled for June 8. If the proposal is approved, the first biweekly dividend will be paid on July 15.
Plans to stabilize STRC price swings
Strategy has announced that while the annualized dividend yield for Stretch (STRC) holders will remain fixed at 11.5%, the frequency of payments is set to double. The total annual payout obligation will stay at $1.2 billion, but investors will start seeing dividends in their accounts roughly every fourteen days instead of monthly.
The presentation highlights that every ex-dividend date typically causes an average $0.45 drop in STRC’s share price. Usually, portfolio values recover to previous levels within about two weeks, mirroring the time it takes for the market to absorb the dividend. On the payout date, STRC tends to fall by an amount equal to the declared dividend.
“Switching to biweekly payments would smooth price fluctuations and help keep STRC close to its $100 nominal value, supporting more consistent fundraising for bitcoin purchases,” Strategy explained in its presentation.
If STRC drops below $100 per share, the company’s ability to issue new shares and raise funds to buy bitcoin becomes restricted. By keeping prices steadier through more frequent dividends, Strategy aims to maintain normal fundraising operations.
Reducing volatility and supporting regular investments
The shift to dividends every two weeks is designed to minimize price volatility and shorten the recovery period following payouts. According to company officials, this adjustment will also allow investors to reinvest dividends more quickly and spread bitcoin acquisitions more evenly throughout the month.
The investor deck also noted that the new schedule aligns with the biweekly payroll cycles common in the United States, which could further encourage regular investment from shareholders. By providing more frequent opportunities for entry and exit, the change aims to make STRC less prone to sharp price swings.
Market impact and current status
According to Strategy’s data, STRC’s average volatility stood at 13% between August 2025 and March 2026, but dropped sharply to 2% during March and April 2026. The company suggests this improvement may be linked to changes in the dividend payment system.
If the proposal goes through, STRC will become the market’s first preferred equity to deliver dividends every two weeks. At present, there are 921 preferred shares making payouts every quarter and 32 paying monthly. Under Nasdaq rules, at least ten days must elapse between dividend declaration and the ex-dividend date, and this will remain unchanged.
After the April 15 dividend, STRC’s price dipped below $99, according to the latest report. A drop greater than a dollar once again highlighted the company’s urgency to curb future volatility.
